Underwriting management is a delicate balance of speed and accuracy. If the underwriting ingestion and decision process is too slow, insurance companies risk losing customers to competitors. On the other hand, hasty underwriting decisions can lead to unprofitable risks in the portfolio.
Current challenges in insurance underwriting practices
- Data silos. Fragmented and numerous data systems limit underwriters’ ability to use data holistically and clearly understand the level of risk.
- Inefficient processes. Manual or siloed processes cause delays in responding to brokers, intermediaries, and the insureds, damaging customer satisfaction in a competitive market.
- Talent shortages. High workforce turnover and the increasing talent gap pose a significant threat to long-term business stability for insurance companies.
To tackle these challenges, many insurance companies have undergone modernization initiatives. But faced with an overload of siloed and ineffective processes and data, it can be difficult to know where to start to make impactful changes. Here are four best practices to consider when addressing insurance underwriting process transformation.
1. Prioritize data-driven decision making
The underwriting process has always relied on data, but the volume of data available today is overwhelming. Leveraging predictive analytics and data integration tools enables underwriters to make more informed decisions, uncover patterns, and better assess risk profiles. Access to real-time data, including customer behavior insights and predictive models provides more accurate pricing and tailored coverage.
2. Foster collaboration across teams
Underwriting is a team effort, requiring seamless collaboration between underwriting departments, sales teams, and risk managers. Connected platforms that facilitate communication and data sharing can improve transparency and ensure alignment. Underwriting team collaboration enhances the ability to holistically manage potential risks and actual risk, leading to better outcomes for both insurance companies and customers.
3. Streamline processes with workflow automation
Speed and accuracy are the two pillars of effective underwriting practices. Automating repetitive tasks—such as data entry, document verification, and initial risk screenings—frees underwriters to focus on complex decision-making. Underwriting workflow automation also ensures faster response times, improving customer satisfaction and reducing the likelihood of losing desirable, low-risk clients to competitors.
4. Invest in advanced technology solutions
Automation technologies are revolutionizing the underwriting process. They streamline workflows, reduce human error, and enable faster risk assessments. For instance, artificial intelligence powered tools can automatically analyze historical claims, assess risk level indicators, and flag potential anomalies, empowering underwriters with actionable insights.
Embracing a connected solution
To thrive, insurance companies need end-to-end underwriting systems with automation capabilities. Appian Connected Underwriting is just that. The Connected Underwriting system improves operational agility and helps insurers position themselves for sustained success. Here’s what you can do with Appian:
Increase speed to quote. Boost straight-through processing by unlocking a single, 360-degree view to reduce turnaround times.
Minimize risk and improve profitability. Pull in data from advanced data sources to better determine the risk level of a potential customer while increasing quote-to-bind ratio.
Deliver a superior customer experience. Simplify customer journeys and reduce quote-to-bind times to win and retain more customers.
Increase employee satisfaction. Implement smart processes to help new employees get up to speed faster and workers focus on their areas of expertise, improving job satisfaction and retention.
Improve broker experience. Establish a portal for brokers and agents to create and streamline submissions for your underwriters’ attention.
