Magnum: Automated underwriting for a new decade
In today’s global markets, many consumers want to access insurance products in a fast, straightforward manner. And, of course, insurers require support for their worldwide strategies across many sales channels.
Timely and cost-efficient
“Modern technology can help improve the insurance consumer’s experience, providing the solution is timely and cost-efficient,” Paul Hately of Swiss Re explains, “and an automated underwriting system can really add value to a life and health insurer’s business.
“What’s more, a quality system will provide vital data and management information to help an organisation develop their underwriting and wider business strategies.”
Swiss Re has recently enhanced Magnum, its renowned automated underwriting system. There are many advantages, such as a “free-text matching” dictionary to guide the consumer through the underwriting process and reduce the number of referrals to an underwriter. Plus, the system provides strategic information to help businesses in an increasingly competitive world.
15 year evolution
“The system’s evolved over the last 15 years with a focus on consumer needs,” Paul continues, “and it’s been developed by underwriters to ensure that it’s easy-to-use.
For example, the advanced drag-and-drop technology allows the user to adapt the system to their own underwriting rules in a simple way, reducing the need for IT support.
“As we enter a new decade, the need for fast, technological solutions will be essential in responding to consumers’ needs. We’ve enhanced Magnum to ensure that our clients will be at the forefront of this exciting climate.”
Several insurance companies have already opted to use Swiss Re’s enhanced automated underwriting system.
Milton Jennings, CEO of Fidelity Life in New Zealand, said: “We need an underwriting solution that helps us compete in the demanding independent financial adviser market. After considering other offerings, we chose Magnum partly because it will get more business on the books, faster and more cost-effectively. It's also scalable in line with our business needs and those of our distributors.”
In 2009, Aviva Ireland reviewed a number of business processes with a view to improving the customer experience and at the same time drive efficiencies.
Following discussion with Swiss Re, a decision was taken to redesign the underwriting process and transfer the assessment of risk directly to us. This was supported by strict service level agreements and a fee structure that incentivises us to underwrite efficiently - allowing both Aviva and Swiss Re to be commercially aware but remain customer focused. The transfer was further supported by allowing Aviva access to our industry-respected Magnum and LifeGuide client tools.
The partnership arrangement started in September 2009 and was followed by the introduction of Magnum in February 2010, which has already resulted in a significant increase in day-one automated decisions.