Tower Australia is looking to use a new automatic rules system to revolutionise the way it underwrites retail life insurance policies.

It is piloting a technology-based system that provides instant underwriting decisions across its full range of products, including total and permanent disability, income protection and critical illness policies.

Head of Alliances and Direct Business Brett Yardley says the project involves two crucial partners. Software developer Allfinanz created the technological infrastructure, to which a set of underwriting rules from Munich Re is applied.

"Our aim was to reinvent the end-to-end application process to reduce cycle time and hassle for customers and distributors," he said.