🇦🇺Australia

Kundenabwanderung durch langsame Zeichnungsentscheidungen

3 verified sources

Definition

Australian life and risk insurance underwriting processes often require applicants to complete detailed personal statements, provide medical tests and financial documents, and then wait several days for an outcome after all information is received.[2][4][9] Guides indicate that where extra information is required, the application is effectively paused until the customer responds, with typical total time from application to decision stretching beyond a week in many cases.[2][4] Each additional touchpoint and day of waiting increases the likelihood that the customer will disengage or place cover elsewhere, especially in competitive retail life and income protection markets. Industry experience and international benchmarks suggest that lengthy underwriting journeys can reduce conversion by 5–15 percentage points compared with near‑instant decisions for similar risk profiles. For an Australian insurer writing, for example, AUD 200m of new individual risk premium annually with a 50 % conversion rate, improving conversion by even 5 percentage points (from 50 % to 55 %) via faster underwriting would add ~AUD 20m p.a. in new premium, implying that a similar amount is currently lost due to friction in the process.

Key Findings

  • Financial Impact: Logic-based: Estimated 5–15 percentage‑point drop in conversion for complex, multi‑week underwriting journeys; for a portfolio targeting AUD 200m of new annual premium this equates to ~AUD 20–60m p.a. in foregone written premium attributable to underwriting‑related customer friction.
  • Frequency: Recurring across all fully underwritten life and complex commercial risks requiring additional evidence.
  • Root Cause: Paper‑based or manual data collection, slow ordering and handling of medical/financial evidence, lack of integrated digital workflows and absence of real‑time decisioning rules for low‑to‑medium risks.

Why This Matters

The Pitch: Versicherer in Australien 🇦🇺 verlieren schätzungsweise 5–15 % potenzieller Neuverträge, weil Kunden während wochenlanger Underwriting‑Prüfungen abspringen oder zu schnelleren Anbietern wechseln. Automation of data collection, third‑party data pulls and risk decisioning can recapture millions in annual premium.

Affected Stakeholders

Chief Distribution Officer, Head of Retail Life/Income Protection, New Business Underwriting Teams, Advisers and Intermediaries, Customer Experience Managers

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Prämienverlust durch falsche Risikoeinstufung bei Neuverträgen

Logic-based: ~1–3 % of earned premium lost to mispricing; for a mid‑size motor/SME carrier with AUD 1bn GWP this equates to AUD 10–30m p.a. of avoidable revenue leakage in new business underwriting.

Fehlentscheidungen bei der Risikoselektion durch unvollständige Daten

Logic-based: 1–3 percentage‑point impact on loss ratio from mis‑selection; for a AUD 500m earned premium book this equates to approximately AUD 5–15m p.a. in excess claims or missed profit linked to new business underwriting decision errors.

Verzögerte Katastrophenregulierung führt zu Beschwerden und AFCA-Kosten

Quantified: Approx. AUD 500–1,000 total cost per AFCA dispute (case fees, internal time, higher settlement), leading to ~AUD 150,000–600,000 per major catastrophe event if 300–600 extra complaints arise from poor triage and delays.

Adjudication Decision Errors

2-5% of claim value in overpayments or rework per erroneous adjudication (industry standard); 10-20% error rate in manual reviews.

Adjudication Non-Compliance Penalties

AUD 10,000+ per disputed claim in adjudication and court enforcement costs; total process 3-6 weeks delaying payments.

Claims Payment Delay Costs

AUD 5,000-20,000 per claim in capital holding costs over 3-6 weeks; 10-20 business days for determination.

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