TOWER Accelerated Underwriting - riskinfo

Life InsuranceAcceleratedUNDERWRITINGAnswers for AdvisersSIMPLICITYCONTROLaccelerate.toweraustralia.com.au

The Accelerate solution is made upof a number of components that workin combination to deliver our aim – toprovide 85% of underwriting decisionsin three working days for 25 to 45 yearolds, that segment of the market whichhas the greatest need for life insurance.One of the most important componentsof the Accelerate solution is our approachto underwriting. We call it AcceleratedUnderwriting because it ensuresthat you and your customers receiveunderwriting decisions, faster.

The AcceleratedUnderwriting approachThe philosophy that underpins our approachis simple – Accelerated Underwritingminimises the need for medical evidence byrelying wherever possible on the customer’spersonal disclosures to make a decision.This makes the underwriting process fasterand hassle free for you and your customers.There are no mandatory Personal MedicalAttendant Reports (PMARs) which meanswe’re underwriting life insurance in anefficient, cost effective manner by basingunderwriting decisions on the customer’sdisclosures rather than relying on medicalreports to provide an outcome.It also means we’re providing yourcustomer with the best possible purchaseexperience by minimising the need formedical evidence which saves them timeand unnecessary hassle.Benefits of AcceleratedUnderwriting• Aims to provide 85% of underwritingdecisions in three working days – fasterunderwriting decisions mean you spendless time on following up business andmore time on sourcing and servicingcustomers• The are no mandatory PMARs forAccelerate customers which minimisesthe long and difficult process of tryingto obtain details of a customer’smedical history• Accelerate online has the ability to providean automatic underwriting decision insome cases which means instant coverfor your customers• Accelerate online only asks customersto answer relevant, specific questionsto the cover they’re applying for whichsaves their valuable time and makes theapplication process faster and easier• Accelerated underwriting uses teleunderwritingnot tele-interviewing whichmeans our underwriters are both skilledand empowered to make decisions quickly,which speeds up the application process.To learn more about thebenefits of AcceleratedUnderwriting, please readthrough the following pages.

How AcceleratedUnderwriting worksMuch more than just a technology solution,Accelerated Underwriting combines a uniquephilosophy with leading underwriting toolsto deliver 85% of underwriting decisionswithin three working days, as shown in thediagram below:25–45 year oldsAccelerate online decision(Level 1 questions only)1. DECISIONImmediateAccelerate online decision(Level 1 and 2 questions)Referred tounderwriting2. DECISIONImmediateDesktopreview3. DECISION24 hoursTeleunderwriting4. DECISION72 hoursMedicalevidence85% in three working days5. DECISION15%

Why AcceleratedUnderwriting is differentAs illustrated in the diagram on the left,Accelerated Underwriting decisions can bemade at a number of stages in the process,and a variety of underwriting tools are usedto provide an outcome depending on thenature of disclosures received.Instead of using a technology solution inisolation to provide a fast underwriting decisionfor a small number of cases, or relying heavilyon exclusions to provide restricted cover thatno customer wants and no adviser wants torecommend, Accelerated underwriting relieson a combination of tools to deliver 85% ofunderwriting decisions within three workingdays for 25 to 45 year olds.With Accelerated Underwriting, we’vedeveloped five stages where an underwritingdecision can be made, and at four of thosestages a decision can be made withoutrequiring medical evidence, which makesthe underwriting process quick and easyfor you and your customers.12345Accelerate online decision (Level 1 questions only)A customer answers all Level 1 questions on Accelerate online and receives anautomatic underwriting decision.Accelerate online decision (Level 1 and Level 2 questions)Because of a disclosure to a Level 1 question, a customer may be required to answerLevel 2 drill-down questions on Accelerate online at which point they receive anautomatic underwriting decision.Desktop review (online disclosures only)A customer submits a completed Accelerate online application that is referred tounderwriting. An underwriter then decides whether they can make an immediateunderwriting decision, based on the customer’s online disclosures only.Accelerated tele-underwritingA customer submits a completed Accelerate online application that is referred to underwriting.An underwriter decides they need additional information from the customer to makea decision and contacts the customer by phone to ask specific, relevant questions tothe cover the customer is applying for and the previous disclosures they’ve made online.The underwriter makes an underwriting decision based on the customer’s onlinedisclosures plus the information disclosed over the phone.Medical evidenceOnly as a last resort, where an underwriting decision cannot be made based on disclosuresreceived electronically or over the phone, will an underwriter request medical evidence.The underwriter will request medical evidence for the remaining balance of the cases basedon the disclosures received either electronically, or over the phone. Experience in othermarkets proves that the requirement for medical evidence can be reduced to less than 15%of cases by adopting an underwriting philosophy and process consistent with Accelerate.We’ve provided more details around each of the Accelerated Underwriting toolson the following pages.

AcceleratedUnderwriting toolsAccelerate onlineAccelerate online works by assessingcustomer answers input online using theunderwriting rules built into our applicationengine. This means we have the abilityto receive and assess your customer’sapplication instantly.An automatic assessment may be:• acceptance at standard rates• acceptance with an exclusion, or• acceptance with a loading.When a case is accepted automatically,the result is referred to as a straight throughprocess (STP).If further information is required to completethe case, the application will be referred toan underwriter. In this case an underwritermay still decide that a reasonable and accuratedecision can be made based on the Accelerateonline customer disclosure information only.In this instance, a decision will be madeand no medical evidence will be required.This may occur for any benefit level up tothe automatic medical limits.No automatic PMARsOver reliance on Personal MedicalAttendant Reports (PMARs) to provide a finalunderwriting decision is a problem oftenencountered in the life insurance industry.A 2003 study undertaken by a globalreinsurance company in the United Kingdomfound that more than 70% of initialunderwriting decisions remained unchangedafter collecting further medical information.In other words, PMARs were a waste of bothtime and cost in almost three quarters of thecases reviewed.Our experience suggests the same may bethe case here in Australia, where between50% and 60% of all traditional life insuranceapplications involve the collection of medicalinformation. If the same ratios apply as inthe UK, approximately seven out of tenPMAR requests impose unnecessary work,time delay and hassle on you and yourcustomer, because PMAR’s weren’t necessaryin the first place.No wonder life insurance has become toohard for many advisers to sell.With Accelerate there are no mandatoryPMARs for customers, saving both you andyour customer time and hassle.Level 1 and Level 2 questionsStraight through processing (STP) occurswhen a customer receives an automaticacceptance decision based on their answersinput via Accelerate online. We expectaround 35% of underwriting decisions tohappen at this stage.To complete an application, Level 1 questionsmust be answered in all instances. Level 1questions are similar to those questionsusually included on a personal statement,however Accelerate online only asks yourcustomer to answer questions relevant tothe cover they are applying for which makesthe application process even faster.Once all Level 1 questions are completedon Accelerate online, a customer may beautomatically accepted.If all Level 1 questions have been answeredbut further information about the customeris required, the customer will be asked toanswer additional questions that delve deeperinto their history. These questions arereferred to as Level 2 questions.

Contact usFor more information on Accelerateand how it can help you and yourbusiness, contact your Accelerate SalesManager or the Accelerate ResourceTeam on 1800 100 678andyour business today.TOWER Australia Limited ABN 70 050 109 450 AFSL 237 848DISCLAIMERThis information has been prepared for use by advisers only, in no circumstances should it be provided to a customer.It contains general information only and does not take into account any personal financial objectives, circumstancesor needs. Benefit exclusions and adjustments may apply. If there is any inconsistency between this document andthe Product Disclosure Statement or Policy Document, the terms of the Product Disclosure Statement and/or PolicyDocument will prevail to the extent of the inconsistency. A policy can only be affected after completion of anapplication form. Prior to making any decision customers should read the Product Disclosure Statement.T3833/V001