Zurich has developed artificial intelligence models to support the underwriting process for life applications with mental health disclosures.

The AI models are the result of a collaboration with University of Technology Sydney aiming to streamline the insurer’s ability to underwrite life policies.

Zurich says the models draw on anonymised data from seven years of past applications to identify factors correlated to a mental health exclusion being placed on an applicant. These factors include time spent in hospital or having medical treatment during the past five years, and lack of participation in pastimes or recreational activity.

The models will be used to verify decisions made by Zurich’s underwriting team and the existing rules engines they use, in keeping with its AI philosophy to “always keep a human in the loop”, the insurer says.

“By using AI models to assist the underwriting process, Zurich can reduce the need to access doctors’ reports, eliminating significant friction within the application process and reducing applicant concerns around privacy,” Zurich Australia and New Zealand head of retail Jacqui Lennon said.

It can take as long as 22 days for a doctor’s report, Zurich says.

At present, about one-quarter of life insurance applications Zurich receives include a disclosure for a mental health condition. Last year mental health was the third most common cause of claims, accounting for 20% and resulting in $255 million in benefit payments.