OnePath Uses Big Data to Relaunch Underwriting System

OnePath has updated its underwriting rules engine reducing the amount of questions related to an applicant’s medical history by around 70 percent, and reducing the time to complete an application by up to 30 percent.

ANZ Wealth chief underwriter, Peter Tilocca

The newly rebuilt underwriting system is based on extensive analysis of ten years of OnePath data by the Advanced Analytics Institute (AAI) of the University of Technology Sydney to create the new system in partnership with OnePath.

ANZ Chief of Underwriting, Peter Tilocca said the system used Artificial Intelligence, data science and data analytics to create a simpler, more intuitive experience for people applying for cover.

Tilocca said OnePath provided more than 50,000 pieces of data to AAI which allowed the insurer to reduce the number of medical questions across all products sets from 38 in a paper application, to 11 in the electronic system.

Our aim was to ask the right questions, not reduce them…

“Our aim was to ask the right questions, not reduce them but we are now seeing tele-underwriting coming in at 15 minutes, compared to 25 minutes in the past for applications at standard rates,” he said.

The underwriting system has also added a further 3,000 medical conditions, including 1,000 medical aliases more aligned to everyday language, which Tilocca said allowed advisers and their clients to better identify pre-existing conditions during the application process.

OnePath also stated the new system had higher straight-through processing and acceptance rates than its previous system, with 30 per cent faster completion times for personal statement, and was likely to reduce underwriting referral triggers by 2,300 per annum.

The launch of the new system, which was made available to advisers two weeks ago and is accessible via OnePath’s adviser portal, follows a smaller pilot project in which the data analysis and underwriting system was applied to tradespeople to gauge the capability of system (see: ANZ Offers Predictive Underwriting to Tradies).