ANZ is rolling out a predictive underwriting system that makes its OneCare insurance application process easier for tradespeople, following a successful three-month pilot program in Victoria.

“We are pleased with how it is performing, so we have taken the decision that we can roll out nationally,” ANZ Wealth Chief Underwriter Peter Tilocca told insuranceNEWS.com.au.

The system will initially focus on tradespeople aged 20-40, after that group shaped as a key opportunity in work with the University of Technology Sydney’s Advanced Analytics Institute.

Data from 10 years of OneCare underwriting and claims decisions was analysed and layered, providing a different perspective that highlighted associations and commonalities.

As a result, the number of medical questions using predictive underwriting was reduced to eight from at least double that in previous processes.

For paper applications there could be as many as 32 base questions.

“The underwriting process today is at best described as cumbersome, and in a world where the consumer now expects instant gratification, an underwriting timeframe average of 20-30 days will no longer by acceptable,” Mr Tilocca said.

Predictive underwriting follows the introduction of a tool to help advisers with real-time loadings and exclusions for pre-existing medical conditions.

Mr Tilocca says ANZ will consider further innovations as it takes advantage of shifts in technology and seeks to improve life insurance underwriting processes that have changed little in two decades.

“We recognised some time ago that the landscape is shifting and there is lots of commentary around that says we are into the fourth industrial revolution,” he said.

“We now have new tools and partners that can help us improve the underwriting process.”