As you may be aware, we recently launched a change to our underwriting process for Mortgage Repayment Cover that removed the requirement for eligible customers to provide proof of mortgage. In this edition of Underwriting Uncovered, Head of Underwriting Monique Ravening explains why we made this change.
Here at Chubb Life we recognise the underwriting process can at times be time consuming and complex for your customers. That’s why we’re continuously looking for ways to simplify our processes and find ways to do things a little differently.
Proof of mortgage no longer required for eligible applications
As Mortgage Repayment Cover is an agreed value benefit, there’s usually a requirement to provide proof of mortgage as part of the application. We want to challenge that norm, so we’ve developed a way to gather the information we need to underwrite your customers through additional questions, rather than official mortgage documentation.
This means that for eligible customers, proof of mortgage is no longer required at the point of application and most importantly, we won’t ask for it at claim time either.
How does it work?
If your customer is applying for a $6,000 monthly benefit or less, based on 115% of their mortgage, they’ll need to provide the following details of their mortgage repayments:
- remaining loan amount,
- loan term end date (the date your loan is due to be repayed), and
- interest rate.
This detail can be easily found on your customer’s mobile banking app, or through their online banking portal.
From there, our rules engine (or the underwriting team for paper applications) will undertake a mortgage calculation. If the calculated result matches the quote you’ve provided, no proof of mortgage will be required. If the stated monthly repayment amount is greater than the calculated repayment(s), we’ll keep processing the application and at this point one of our team will be in touch to ask for the proof of mortgage to be provided. This is now the exception, not the rule.
Is there anything else we should know?
To meet the eligibility criteria, customers must be insuring the mortgage for their owner-occupied property. Applicants must also be employed, self-employed or a “homemaker” to qualify.
Proof of mortgage is still required for students, retirees, and unemployed applicants as well as those applying for a monthly benefit of $6,001 or more, and those wanting to insure the mortgage for a non-owner-occupied property.
Find out more
To find out more about this change, check out the Frequently Asked Questions on our website or contact your Business Partnership Manager, they’ll be happy to help.