Underwriting: simpler and faster

TAL is continuing to improve the underwriting process, which is driving efficiency and giving your members more control and confidence over their insurance decisions.

Increasing automation to enable faster decisions

Our latest digital optimisations have delivered an overall 11% increase in straight-through-processing (STP) rates since December 2023. Our average STP rate across our portfolio is currently around 50%, with 85% of members now completing their application in a single session.

These optimisations include:

• Changes to underwriting rules. Refinements around mental health, family history, back conditions and knee disorders, for example, have helped to ensure the questions we ask members are relevant, easy to answer and deliver automated outcomes to as many members as possible.
• Automating checks for previous applications.We’ve automated the ‘existing business check’ process where we confirm whether the member has previously submitted an insurance application

Reducing medical requirements for members

The STP rate will continue to increase on the back of our latest updates to automatic medical limits.   Previously, members over a certain age or who applied for a level of cover over a certain threshold, were automatically required to provide medical evidence, regardless of whether they’d made any medical disclosures that may warrant us to request further information.

To address this, the triggers for automatic medical requirements across all cover types have been adjusted:

• Life cover age limit increased from 45 to 49 years
• TPD cover age limit increased from 44 to 45 years
• Income Protection age limit increased from 44 to 45 years, with the monthly benefit limit for members up to age 45 increasing from $12,001 to $15,001.

We’ve also changed the following requirements:

• The requirement for HIV, Hepatitis B & C serology tests has been removed. These were routinely called for, in addition to the MBA20 blood test.
• Older members who apply for a monthly Income Protection benefit above $12,001 can now complete a Fast Check exam in addition to the current blood test requirement, rather than us having to write to their doctor to provide a medical report.

A better member experience

As a result of these changes, members will benefit from:

• higher automatic acceptance rates
• less effort to undergo testing and gather evidence
• faster decisions without the need to wait for, or rely on, medical reports
• the removal of unnecessary requirements
• more convenient medical testing.

We’re also investigating how new technologies such as AI can improve the application and underwriting experience for members. As an example, we’re currently completing a proof of concept to explore how advanced AI search functionality can help alleviate pain points for members when selecting occupations during the assessment process.

We’ll keep you updated as we continue delivering further enhancements. If you have any questions about these changes, please contact your TAL Partnership Manager.