Pre-screening system lets customers check eligibility before applying
AI-OCR automates claims document sorting
Automatic review rate nearly doubles to 45% after fraud detection system launch
Tongyang Life Insurance, a unit of Woori Financial Group, is applying digital and AI technology across every step of the customer experience — from initial coverage consultations to claims payouts. The company said the initiative goes beyond simple task automation, focusing instead on cutting the waiting times and hassle customers face when using insurance services.
Tongyang Life operates a pre-screening system that informs customers of underwriting results before they complete an application, according to the insurance industry Tuesday. Under the previous process, customers had to finish designing a coverage plan, fill out an application and then go through underwriting before learning whether they qualified. If the review resulted in a rejection or changed terms, they had to start the planning process from the outset.
With the pre-screening system, customers who have given prior consent can check — before submitting an application — whether certain coverage items are unavailable or subject to conditional approval. The system is designed to reduce post-application rejections and help customers more efficiently select coverage suited to their needs.
For post-enrollment services, the company has introduced AI-based optical character recognition, or AI-OCR, to automatically sort documents submitted with claims, automating the repetitive work of checking and processing paperwork. The company said the shorter processing times have also reduced customer wait times.
AI also plays a role in claims review. Through its Claim Risk Detection System, or CRDS, Tongyang Life analyzes claims data and accident histories to flag potential insurance fraud. Since the system's introduction, fraud detection efficiency has improved by 63 percent, and the automatic review rate has nearly doubled from 22 percent to 45 percent. The company said the system both prevents payout leakage from fraud and false claims and speeds up the review of legitimate claims.
Tongyang Life's digital and AI strategy is also tied to the competitiveness of a combined insurer the group plans to launch. CEO Seong Dae-gyu, speaking at a recent group-wide CEO town hall meeting where the merger with ABL Life Insurance was officially announced, emphasized using AI to deliver differentiated customer service and strengthen sales competitiveness, outlining plans to position the combined entity as a "first mover" in the insurance industry.
Meanwhile, Woori Financial Group made Tongyang Life a wholly owned subsidiary last month and plans to launch a combined life insurer with ABL Life Insurance in the second half of 2027, with total assets of 55 trillion won ($40.7 billion).
won@heraldcorp.com
