97% Automated Insurance Underwriting using Machine Learning

97% Automated Insurance Underwriting using Machine Learning

About Client

HDFC Life (HDFC Standard Life Insurance Company) is a leading long-term life insurance provider in India. It offers a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment and Health. HDFC Life has over 30 individual and 10 group products in its portfolio, catering to a diverse range of customer needs.

97% Automated Insurance Underwriting using Machine Learning


HDFC Life was looking to automate the Underwriting system and integrate the underwriting process with aggregators and other distribution partners’ systems. They were looking to create an Underwriting Application (UWA) where rules will be defined for underwriting process. The solution would use Drools for the rules engine. The new underwriting application would allow even non-technical users (like underwriters) to author, test and maintain underwriting rules. Also, UWA would allow integration with partner portals. Partners would be able to use underwriting as a service or deployable tool. They would be able to integrate with their GUI. The end goal was to achieve 90% automation of the underwriting process.

Business Challenge

Underwriting is the heart of any Insurance company. HDFC Life depended on a third-party tool called Magnum from SwissRe for its underwriting process. This is a proprietary tool. It needed be upgraded regularly and involved cost. Also, it was a black box controlled by SwissRe. HDFC was dependent on SwissRe for changes or customizing the product.

97% Automated Insurance Underwriting using Machine Learning


RapidValue built the custom Rules Engine for HDFC Life that substituted Magnum. RapidValue built a system equipped with Artificial Intelligence that leverages machine learning to understand and automate underwriting decisions for cases that are currently being referred to manual underwriters.

RapidValue implemented the solution as follows:

  • RapidValue introduced a scalable Underwriting Decision Engine (UDE).
    Personal, occupational and medical rules are analytically defined for
    each product.
  • Robotic Process Automation (RPA) was used to automate medical decisions from medical examination reports.
  • Artificial Intelligence is built-in to learn from any manual underwriting and automatically configure decisions in UDE.
  • Rating based profiling system was used for quicker and reliable decisions.

Application Architecture

97% Automated Insurance Underwriting using Machine Learning


HDFC Life derived the following results by implementing our solution:

  • 0197% automation achieved in making underwriting decisions.
  • 0276% reduction of cost and up to 40% increase in productivity.
  • 03Significantly reduced risk through ‘Intelligent’ systems.
  • 04Decrease in customer drop-off rates during lead generation-to-purchase customer journey.
  • 05Increase basket size through smart upselling.
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