ASX-listed Tower Australia Group Ltd is piloting a new automatic underwriting and rules system that has been specifically modified for the Australian market.
The system has been supplied by Straight Through Processing (STP) provider Allfinanz with rules set by Munich Re, one of the world's leading reinsurers.
The system uses a technology-based automatic underwriting system that makes decisions across the full range of retail life insurance products from total and permanent disability (TPD) to critical illness and income protection.
Life business manager at Munich Re, Matthew Pilcher, said the automatic underwriting system contains a comprehensive rule set developed to meet the specific requirements of the Australian market.
The rules have been modified in partnership with Tower while also working to maximize STP rates.
Tower selected the system after conducting a global assessment of automated underwriting technologies and began a pilot program for testing which is currently underway.
The company head of alliances and direct business, Brett Yardley, said the aim was to re-invent the end-to-end application process to reduce cycle time and hassle for customers and distributors.
"A robust underwriting capability is a critical part of the overall business solution we have developed by Tower," he said.
Allfinanz CEO, David Wall, said solutions for Australian life insurance companies make it possible to slash days from the typical life insurance application process, and even allow insurers the option of offering instant approval.
"In this instance, by partnering our unique automated underwriting technologies with Munich Re's expertise and business rule sets, we are able to deliver the required improvements in productivity for our client," Wall said.
Founded in 1987, Allfinanz provides software that enables banks to approve up to 80 percent of new applications at the point of sale for a variety of life insurance products across a range of distribution channels.
The Munich Re Group operates worldwide with around 37,000 employees at over 50 locations.