MLC Life Insurance has struck a deal to offer Pacific Life Re’s underwriting rules engine – UnderwriteMe – in Australia.

Developed in the UK and Australia, the engine is a comprehensive new business-processing and automated online underwriting system.

MLC Retail Advised Insurance COO Melissa Heyhoe says it changes the way life insurers assess risk, significantly reducing the time taken to arrange cover.

“By automating the underwriting process, we’ll… ask customers fewer and more relevant questions, get a more accurate assessment of their risk and approve cover in just a few days,” she said. “It is a major innovation for our industry.”

The engine uses a comprehensive database of industry standard questions that assess a person’s health and lifestyle. Based on responses, it provides an instant quote on life cover, and any indicative loadings or exclusions that might apply.

More than 6500 medical conditions are stored on the engine, providing a huge range of data to assess a customer’s potential risk.

Ms Heyhoe says the engine will create significant efficiencies for MLC, its superannuation fund clients and advisers.

“Based on testing to date, it is expected to double straight-through acceptance rates, where customers are insured without the need for manual underwriting,” she said.

For advisers, the engine includes a pre-assessment tool for clients who want an instant indicative price.

Nine insurers in the UK and Ireland have taken up Underwrite Me in the past 36 months.

The engine will be available across all retail advised, underwritten bancassurance and direct life insurance products, and select group insurance clients later this year.