Automated underwriting in life insurance: Predictions and optimisation
- Publication Type:
- Conference Proceeding
- Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), 2018, 10837 LNCS pp. 135 - 146
- Issue Date:
© Springer International Publishing AG, part of Springer Nature 2018. 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.
Please use this identifier to cite or link to this item: