Underwriting is a critical component of the insurance lifecycle; It helps insurers assess risk and determine the appropriate pricing of insurance policies. As insurers face an increasing number of economic disruptions, natural disasters, and challenges from digital-native insurance companies, the pressure is on to accelerate the underwriting process.
The good news is that the automation movement has picked up momentum, with many insurers now using tools for automated underwriting to make decisions and deliver quotes more quickly and efficiently. That’s critical, as speed to quote represents a key competitive differentiator.
How do the fastest insurance organizations accelerate the flow of the underwriting process and reduce time to quote? Let’s examine the key ingredients in a successful playbook.
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Why is accelerated underwriting moving to the top of the modern insurer's priority list? Consider the differences between automated and traditional underwriting in commercial insurance.
Automated underwriting tools use advanced technologies, such as artificial intelligence (AI), intelligent document processing (IDP), and machine learning, to automate some of the manual processes involved in traditional underwriting. The magic of automated underwriting tools is that they can quickly analyze vast amounts of data and make decisions in real-time, delivering quotes to clients much faster.
Automation may not fit every workflow, but with the rapid evolution of risk, insurers are focused on automating critical parts of the underwriting process. It’s true that automating specific tasks can help insurers streamline operations, boost efficiency, and improve customer satisfaction, but ultimately the decision to automate will hinge on several factors, including the type of insurance involved, the complexity of the application, and customer expectations.
To compete and win in the modern insurance arena, insurers need to adopt a business-focused playbook that integrates and coordinates multiple technologies, streamlines complex processes, cuts costs, and meets customer expectations when it comes to:
It goes beyond simply comparing one tool to another to find the right blend of technologies that work together to minimize risk, reduce costs, and deliver insurance products that stand out. What do successful strategies have in common? Here are five areas to focus on as your organization works to improve process flow and speed time to quote:
Clients expect quick quotes and seamless digital experiences, and by automating core elements of the underwriting process, integrating data, and simplifying procedures, insurers can speed up the quote process and enhance the overall underwriting experience.
[ How did commercial insurer CNA improve underwriting processes and realize a 60% time savings? Get the case study. ]