Insurtech firm UnderwriteMe, a subsidiary of Pacific Life Re, has reported that 90% of life insurance applications involving mental health disclosures were instantly accepted in 2024, according to the latest edition of its Protection Platform Pulse Report.

The annual report, published today, is based on anonymised and aggregated data from across the UnderwriteMe Protection Platform. It reflects real-time outcomes from submitted and purchased applications and includes business placed with a range of leading insurers such as HSBC Life, LV=, Royal London, Scottish Widows and Vitality.

The analysis suggests that underwriting processes are becoming increasingly inclusive and efficient, even for applicants with pre-existing health conditions. On average, customers disclose 1.16 health or lifestyle-related issues per application, highlighting the importance of systems that can handle complexity without lengthy delays.

According to the data, demand for bundled protection products continues to rise. The average number of products per application reached 1.4 in 2024, pointing to an upward trend in clients seeking more comprehensive cover.

The report also examined straight-through processing (STP) rates, a key indicator of underwriting efficiency. In 2024, 85% of life insurance applications and 80% of critical illness (CI) applications were processed without the need for manual intervention. Income protection (IP), which typically involves more complex underwriting, maintained an average STP rate of 62% across both 2023 and 2024.

Andrew Doran, chief executive of UnderwriteMe, said: “The Protection Platform continues to offer highly competitive STP rates year-on-year, with Life Cover at 85% and Life Cover with Critical Illness (CI) at 80%, indicating a competitive market where underwriting efficiency is key. The slight rising trend in Life Cover and Life with CI submissions signals growing demand for comprehensive coverage solutions.”

He added that while volumes of placed applications remain important, STP rates have become a central measure of platform performance. “In a highly competitive market, where clients expect speed and convenience, high STP rates provide advisers with a significant advantage — streamlining the buying process, improving client satisfaction, and ultimately driving more business growth.”

The report’s data on ‘buy now’ decisions, which reflect instant underwriting outcomes, show high acceptance rates for a range of common conditions. Mental health conditions such as depression, anxiety and stress saw buy-now rates of up to 90% for life cover and up to 93% for critical illness cover. Other high-performing disclosures include asthma, back pain, and hypothyroidism, with some of these conditions achieving buy-now rates of up to 99%.

Tom Conner, strategy development director at Drewberry, noted the value of speed in the protection advice process. “Protection advisers know that when a case is referred to underwriting the process can often be long – sometimes many months, which is time consuming and costly. In some situations clients lose interest during the underwriting process and contacting them with a higher premium once they’ve lost interest can be a lost cause.”

He welcomed the system’s ability to deliver rapid decisions on non-standard cases. “Systems that provide ‘buy-now’ functionality is essential for protection advisers where cases have certain underwriting issues and it’s great to see so many non-standard applications being accepted.”

Among life insurance applications, asthma and back pain achieved buy-now decision rates of 99%, while for critical illness cover, the same conditions also reached 99%. Diabetes, which typically presents a more significant underwriting challenge, still saw 71% of applicants accepted instantly for life cover.

Britney Trussler, protection manager at Dynamo, echoed the value of real-time decisions for clients with complex medical histories. “The most common disclosures we encounter include high blood pressure, high cholesterol, diabetes, and mental health conditions and we frequently see a high rate of instant decisions from UnderwriteMe, provided recent medical readings are within normal or slightly elevated ranges.”

She added: “This is a significant advantage for advisers who help clients with underwriting issues as we can offer provide cover in the same time frame as those with a clean bill of health. Instant decisions for clients with pre-existing conditions significantly reduce the time advisers spend seeking indications from multiple providers, offering immediate reassurance and greater efficiency.”

Reflecting on wider industry changes, Doran acknowledged that 2024 has been a year of disruption and adaptation. “From provider mergers to rising living costs, evolving customer expectations, and increasing regulations, it’s becoming increasingly challenging for advisers to navigate a rapidly changing landscape. However, the findings in our Protection Platform Pulse Report are a positive sign and highlight not just UnderwriteMe’s strengths but the industry’s move toward more inclusive underwriting.”