Hanwha Life Introduces 'Pre-Underwriting'... Quick Confirmation of Subscription Status

Providing Underwriting Results at Insurance Enrollment Stage
Easy Search and Input of Insurance Payment History
Reducing Supplementary and Return Cases, Underwriting Time After Subscription

Hanwha Life announced on the 13th that it has introduced a pre-underwriting system (preliminary insurance application review). The purpose is to enhance customer convenience by providing review results during the insurance application stage.

Pre-underwriting is the process in which the insurer evaluates the risk level of the applicant and decides on acceptance based on the duty of disclosure information provided by the customer before issuing the insurance application form. Insurance planners can quickly confirm the eligibility for insurance during the product design process for the customer.

Hanwha Life Insurance.

Previously, underwriting was conducted after the customer completed the application documents and paid the first premium. Depending on the review results, additional underwriting conditions could be imposed or the application could be canceled, which sometimes led to a loss of trust between customers and planners or contract failures. Additionally, if the duty of disclosure was not accurately provided, the review period could be prolonged.

Hanwha Life has established a system that allows insurance planners (FPs) and customers to automatically and conveniently input insurance claim history from Hanwha Life and other companies after customer consent when filling out the duty of disclosure during the insurance application stage. The company then conducts a pre-review to minimize post-application supplementation and returns, significantly reducing underwriting time. Furthermore, for customers who are difficult to insure based on the review results, alternative product proposals can be quickly offered.

The convenience of modifying the insurance plan according to the review results has also increased. Adjusted conditions such as coverage reduction or premium surcharges are immediately reflected in the application process, eliminating the hassle of redesign.

The introduction of this pre-underwriting system was made possible by pre-testing over 50,000 contracts established last year. To improve the adaptability of the pre-underwriting system in the sales field and conduct preliminary checks, Hanwha Life Financial Services conducted a sales field test for about 170 planners over three months starting from November last year.

Underwriting consists of two types: ‘automated review’ using a computer program and ‘manual review’ conducted by experts. Manual review is performed if supplementary examination is needed after automated review.

As a result of the pre-test, the proportion of cases processed by automated review reached 80% of the total cases. From the customer’s perspective, since most reviews are completed immediately, they can receive the insurance policy on the same day they complete the application form.

Park Sang-hee, head of the Product Manufacturing Capability Enhancement TF team at Hanwha Life, said, “By introducing the pre-underwriting system, we can offer the optimal product in minimal time,” adding, “We expect that the customer-friendly insurance design system, which provides immediate review results, will also enhance our sales competitiveness.”