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Underwriting Technology: What Insurance Leaders Need to Know

Rachel Nizinski, Appian
November 22, 2023

Automated underwriting technology is helping insurers reimagine what’s possible for replacing manual underwriting processes. Gone is the workbench of the 80s and 90s—incomplete data, sluggish page loads, time-consuming workflows and all. And in its place? A modern, connected solution that unifies your data, automates your underwriting process, and improves decision-making for a better customer experience and a stronger bottom line.

To remain competitive, underwriting transformation is a must.

Underwriting teams need to adjust how they make decisions, shifting from an approach that’s historically been more of an art than a science. 

While some aspects of underwriting will continue to rely on human judgment, it’s no longer enough to evaluate decisions after a policy has been created. Instead, underwriters are being asked to make predictive decisions that consider price risk and bottom-line impact ahead of time.

And it’s not just organizational pressures driving this change. Consumers also expect fast, digital-first experiences and fair insurance policies—all things that automation can help provide.

[ Learn more about automation for underwriting? Get The Accelerated Underwriting Playbook: 5 Keys to Automation Success. ]

Automation isn’t a replacement, but an accelerator.

Automated underwriting technology isn’t a replacement for human workers. It offers us a chance at a partnership that accelerates the pace of work and expands the digital tools available in the underwriter’s workbench.

By freeing underwriters from manual processes and repetitive tasks like sorting through emails, tracking down disparate data, or even asking colleagues personally for the status of a case, they can spend more time doing the impactful work they’re best suited to: making accurate underwriting decisions, fast.

The outlook for underwriting technology is promising.

Investing in a new technology requires careful consideration. But with the right choice can make a transformational impact on your organization.

The good news? A survey from Accenture found that most insurers believe technology change has positively impacted their underwriting processes, noting:

Overall, carriers say that technology investments in their organizations have had a positive impact on quoting, selling, evaluating risk and pricing, and servicing accounts.

Expectations for the modern underwriting workbench.

The best underwriting workbenches today have several key components.

When evaluating underwriting technology, consider if it checks these boxes: 

  • It has enhanced data analytics tools like intelligent document processing (IDP), artificial intelligence (AI), and machine learning (ML).
  • It can unify data and provide a single place for data access.
  • It leverages automation tools, like RPA and underwriting workflow orchestration.
  • It contains document management tools that provide a centralized location for access and storage.
  • It has flexible configuration options to adapt as needs evolve—such as prebuilt integrations to rules-engines or core insurance solutions.

Ready to learn more about how to accelerate and optimize your underwriting processes?