Orange Life, One-Stop Insurance Enrollment Service with Big Data Underwriting Prediction

Orange Life announced on the 9th that it will implement a preferential review service using a big data underwriting prediction model.

[Asia Economy Reporter Oh Hyung-gil] Orange Life announced on the 9th that it will implement a preferential underwriting service utilizing a big data underwriting prediction model.

This is a type of underwriting acceptance technique that applies relaxed underwriting criteria or differentiated benefits such as document exemptions to high-scoring preferred customers based on the prediction model results. When customers who agree to pre-underwriting are selected as preferred customers, the underwriting process is omitted, allowing them to receive a one-stop service from plan subscription to application and approval stages.

From the underwriter's perspective, Orange Life established hypotheses regarding acceptance and rejection probabilities, applied a total of 53 key variables including customer information, FC information, and product information to these hypotheses, and learned from approximately 110,000 recent protection insurance contract underwriting results to derive the preferential underwriting service algorithm.

According to a simulation based on applications in May, contracts eligible for the preferential underwriting service accounted for 36% of all applications, of which 21% were automatically approved contracts. All subscription procedures, from application to payment, scanning, mandatory processing, and automatic approval, were completed within about 2 hours.

Orange Life applies this system to a total of five products: Non-dividend Orange 3Care Insurance, Non-dividend Orange Medical Insurance, Non-dividend Orange Dundeun Cancer Insurance, Non-dividend Orange Youth Cancer Insurance (renewable type), and Non-dividend Orange Cube Comprehensive Health and Accident Insurance (non-surrender value type), and plans to gradually expand it in the future.

Byun Chang-woo, Vice President of Orange Life, said, "Underwriting standards were mainly penalties targeting non-preferred customers, such as limit restrictions and subscription restrictions," adding, "We will continue to rethink and actively utilize digital innovation technologies such as big data to provide more benefits to preferred customers by breaking away from fixed ideas."