Award Applications

Expert Underwriting System – Faster Service with Automatic Decision Process

There is a famous saying that goes: the only thing that is constant is change. This saying also rings true for the insurance industry, which many people view as a conservative business and is far from innovation. However, this view is quite opposite from the reality.

Today’s customers want more than just having their needs met, but they also demand convenience and ease in the process of meeting those needs, including when getting insurance protection.

One of the processes that customers most often complain about when they are applying for an insurance policy is during the underwriting process (risk profiling). This process can take several days and is done manually. During this process, the customers would have to wait for days to get a confirmation or for the agents to follow up.

To speed up this process and offer greater convenience for potential insurance customers, Allianz Life Indonesia launched the Expert Underwriting System (‘EUS’). EUS, which was launched in September 2017, is an automatic underwriting or reflexive underwriting system that uses cutting-edge technology to assess the risk profile of customers based on the answers they have submitted. The system then processes these to issue an automatic underwriting decision.

Prior to this, the underwriting process was carried out by human which required a longer process, starting from manual filling of the medical history on life insurance application form, which is then sent to the underwriters to be analyzed using general and international standard rules, and finally a notice is issued to the customer whether they have been accepted or declined to be insured.

By using EUS, customers can now know the decision of their insurance application within minutes. Agents are also empowered to offer better service for their customers in the field.

Leveraging the Agency ToolBox

The EUS is operated through a sales tools application for Life Insurance Agents of Allianz Life Indonesia called ASN Toolbox which was first launched in 2014. When the EUS was first implemented, there were only 2798 agents who used it during the first three months since the launch date. This initial resistance is commonly encountered when a new is system implemented. Another reason is that there is a lack of confidence in the implications of this EUS launch on the productivity of agents and technologies which are continuously being developed in the early phases of EUS launched. However, by providing trainings across Indonesia and constant communications to agents, in 31 April 2018 EUS is used by 5858 agents and has generated new business amounting to IDR 380.8 bio (USD 26.9 mio).

EUS itself provides reflexive questions that the prospective customers must answer. This means the sequence of questions is triggered by the answer to the previous question. EUS increases transparency among prospective customers and agents as both parties can follow and understand all the questions. During the process, the insurance agent acts as a “field underwriter” who must ensure the answers of prospective customers are honest and appropriate to their actual circumstances while also actively explaining various technical terms of insurance. With increased transparency and agents’ involvement, underwriting results can be more precise and consistent. With easy access and usage, EUS is aimed to create a more enjoyable experience for the customers.

EUS is operated through an application on the iPad, making it easier for agents to process and provide underwriting results to potential customers anywhere and anytime. The quick results offered by EUS give customers a sense of effectiveness and efficiency even before their policy is enforced.

This digital innovation is developed to be the beginning of a good experience for the customers as well as increasing the productivity of agents. With EUS, the role of human underwriters are substituted by a system which has been programmed to process underwriting that adheres to general rules in life insurance. The role of the existing underwriters can be shifted to processes that are more complex which involves customer data and analysis of certain cases that are unavailable in the system.

Completing the Customer Journey

The launch of EUS compliments various customer services and digital-based tools that have been launched in the past years by Allianz Life Indonesia. Almost all of the customer touch points have undergone a digital transformation. Allianz Life Indonesia has transformed multiple processes, such as:
• The illustration process of life insurance;
• Submission of life insurance application;
• Initial and continuous premium payment;
• Personal account-based portal for all information related to policy ownership;
• E-statement delivery; and
• Claim reimbursement for health insurance customers.

In the future, Allianz Life Indonesia will continue to develop various digital innovations to simplify and provide convenience for both customers and business partners.