Automated underwriting in life insurance: Predictions and optimisation

Rhys BIDDLE, Shaowu LIU, Peter TILOCCA, Guandong XU

Research output: Chapter in Book/Report/Conference proceedingChapters

10 Citations (Scopus)

Abstract

Underwriting is an important stage in the life insurance process and is concerned with accepting individuals into an insurance fund and on what terms. It is a tedious and labour-intensive process for both the applicant and the underwriting team. An applicant must fill out a large survey containing thousands of questions about their life. The underwriting team must then process this application and assess the risks posed by the applicant and offer them insurance products as a result. Our work implements and evaluates classical data mining techniques to help automate some aspects of the process to ease the burden on the underwriting team as well as optimise the survey to improve the applicant experience. Logistic Regression, XGBoost and Recursive Feature Elimination are proposed as techniques for the prediction of underwriting outcomes. We conduct experiments on a dataset provided by a leading Australian life insurer and show that our early-stage results are promising and serve as a foundation for further work in this space. Copyright © 2018 Springer International Publishing AG, part of Springer Nature.

Original languageEnglish
Title of host publicationDatabases theory and applications: 29th Australasian Database Conference, ADC 2018, Gold Coast, QLD, Australia, May 24-27, 2018, proceedings
EditorsJunhu WANG, Gao CONG, Jinjun CHEN, Jianzhong QI
Place of PublicationCham
PublisherSpringer
Pages135-146
ISBN (Electronic)9783319920139
ISBN (Print)9783319920122
DOIs
Publication statusPublished - 2018

Citation

Biddle, R., Liu, S., Tilocca, P., & Xu, G. (2018). Automated underwriting in life insurance: Predictions and optimisation. In J. Wang, G. Cong, J. Chen, & J. Qi (Eds.), Databases theory and applications: 29th Australasian Database Conference, ADC 2018, Gold Coast, QLD, Australia, May 24-27, 2018, proceedings (pp. 135-146). Springer. https://doi.org/10.1007/978-3-319-92013-9_11

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