ANZ OnePath has rolled out its predictive underwriting technology after a soft launch, to provide simpler, more intuitive experience for customers applying for OneCare insurance.
The application process can be completed 30% faster than the traditional process. The new underwriting system offers higher straight-through processing and acceptance rates.
Created in collaboration with the University of Technology Sydney’s Advanced Analytics Institute, the new underwriting engine is powered by big data, artificial intelligence and data science.
Commenting on the launch, ANZ chief of underwriting Peter Tilocca said: “ANZ OnePath has taken underwriting innovation in a new direction, taking its own data and harnessing new tools such as AI and data analytics to make insurance a more intuitive and engaging experience.”
UTS Advanced Analytics Institute professor Guandong Xu said: “Using AI to simulate people’s decision making process, we have shown how AI has used big data, natural language processing and predictive modelling, to revolutionise a huge process such as underwriting.”
Unveiled in January, OnePath's partnership with the university is investigating how client behaviour modelling, text mining and natural language processing, as well as social and predictive analytics, can “add value in the insurance sector”.
The work – which has been ongoing for around two years – has already used advanced data analytics to slim down the huge number of questions asked in insurance application forms, by cutting out the ones that aren’t relevant to the client, depending on who they are. ANZ chief of underwriting Peter Tilocca said the number of medical questions has been cut from 38 to 11.
Entering this project, Mr Tilocca said the aim was not to slash the number of questions but to ask the right questions.
ANZ completed its proof of concept stage with tradies in mid-April, analysing the data of plumbers, carpenters, electricians and builders aged between 20 and 40.
OnePath is one of Australia’s leading providers of wealth, insurance and advice solutions. As a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ), OnePath operates as part of ANZ’s specialist wealth business. The product OneCare provides a comprehensive range of insurance covers to suit a client’s financial circumstances, including life, total and permanent disability, trauma, and income protection, etc.