"Launching the new URE means we continue to be agile and advance our underwriting while making it easy for customers to seek insurance today and prepare for tomorrow."
- Helen Croft, Chief Underwriter at AIG Life
In partnership with Swiss Re, AIG Life has upgraded its previous underwriting system to Underwriting Rules Engine (URE) using its Magnum Pure technology and global experience. This technology has allowed AIG to consider new ways to assess risk.
Prior to the launch, AIG commissioned qualitative consumer and intermediary research looking at where people may struggle to give the right information and assess how underwriting questions could be improved. This research revealed that customers are largely happy with AIG’s questions, but there are a few issues with wording or understanding, as well as sensitivity around the lifestyle questions asked.
Making sure customers weren’t required to over-disclose was analysed as much as the risk of under/non-disclosure, or misrepresentation. AIG found that people are keen to disclose fully; most said they would rather give more detail upfront and know it’s been provided than come across issues later in the application process that could lead to a claim not being paid.
Consequently, customers and advisers said the new journey was clear and a positive development - similar to AIG’s previous approach but with improved detail of disclosure and a more straightforward application process.
AIG has added over 50 underwriting rules to give customers an immediate decision and reduce the need for GP evidence at the underwriting stage, improving access to insurance. Meanwhile, numerous questions within the rules have been updated to make them more straightforward and easier to answer.
For example, women who were previously diagnosed with diabetes in pregnancy will now be asked more questions, rather than seeking a GP report, and then get an immediate decision.
These enhancements will also provide better outcomes for people with a history of cancer as more customers will be accepted without a Life Insurance rating and fewer will be declined for Critical Illness Cover (CIC).
Commenting on these enhancements, Helen Croft, Chief Underwriter at AIG Life, has said:
“Launching the new URE means we continue to be agile and advance our underwriting while making it easy for customers to seek insurance today and prepare for tomorrow. How we’ve done that should also give advisers confidence that we’ve got their backs in relation to Consumer Duty.
“Our consumer and adviser journey testing ahead of launch is evidence that customers understand the information we’re asking them for, and that we’re acting to ensure good customer outcomes.”
