Canadian InsurTech firm PolicyMe has launched an in-house AI underwriting copilot that has reduced the time underwriters spend processing complex life insurance cases by 59%, according to internal company data.
The tool consolidates case files into a single workspace, summarises medical evidence, recommends decisions for human review and drafts explanations for customers. The reported time saving measures the period from an underwriter receiving a complex case to returning it after review.
The launch addresses a key bottleneck in life insurance distribution. While PolicyMe has automated much of its underwriting process, enabling most applicants to receive decisions within seconds, cases requiring detailed assessments of medical records, laboratory results and other evidence can take days. A shortage of experienced medical underwriters across Canada adds to the challenge.
Operating within PolicyMe’s secure, isolated cloud environment, the copilot combines advanced AI models with proprietary technology to streamline complex assessments. Its workspace brings medical records, laboratory results and supporting documents together, helping underwriters identify missing information that requires follow-up.
The system also converts lengthy attending physician statements and other medical documents into structured summaries. It presents a recommended decision alongside the supporting evidence, while leaving the final judgement to the underwriter.
For applications that are declined, postponed or offered at adjusted rates, the copilot uses underwriters’ notes to draft personalised explanations in plain language, helping customers understand the outcome.
Human oversight remains central to the system. Every output must be reviewed and approved by an underwriter before being shared with a customer. PolicyMe also tests each new version against historical underwriting cases before release, with traceability and validation built into the development process. Technical safeguards prevent customer data from being used to train the underlying AI models.
Founded in 2018 by insurance specialists and technology entrepreneurs, PolicyMe distributes life, critical illness, health and dental insurance directly to consumers online. The company has helped more than 50,000 Canadians obtain over $20bn in coverage and provides B2B2C solutions that allow partner organisations to integrate digital insurance into their customer journeys. PolicyMe is also expanding its engineering, product and operations teams.
Jeff McKay, CTO and co-founder of PolicyMe, said, “Instant decisions for straightforward applications were the first problem we set out to solve. The most valuable application of AI in complex underwriting isn’t replacing human judgment. It’s removing the friction that surrounds it. We’ve designed this copilot to do the heavy lifting on document review, summarisation, and communication, while keeping our underwriters firmly in control of every decision.”
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