Life insurance coverage firms are committing to elevated underwriting efficiencies and improved threat analysis by amassing extra information and investing in new digital processes.
A brand new Accenture Research survey, Intelligent underwriting, of greater than 500 underwriters discovered that insurers are prioritizing information use whereas additionally introducing robotics course of automation (RPA) and trendy coverage underwriting platforms. These techniques use a wide range of information sources—some unconventional, reminiscent of social media, and well being and wellness apps—to complement typical ones to offer deeper and extra actionable insights.
Working collectively, these new applied sciences can’t solely enhance underwriting effectivity but in addition create new alternatives by extracting better worth from a deeper information pool. This is nice information for underwriters as a result of it permits them to look at threat extra totally than earlier than.
Need for effectivity
Improving underwriting effectivity is a key purpose for insurers, as a result of our survey discovered that new applied sciences have truly elevated the workload for underwriters. They informed us know-how has had a constructive impression on their underwriting efficiency, however as a lot as 40 p.c of their time is now spent on non-core administrative duties reminiscent of information entry and information gathering.
Our analysis reveals that insurers wish to enhance underwriter effectivity by investing in applied sciences reminiscent of AI and Natural Language Understanding/Processing (NLU/NLP). The ensuing new capabilities, reminiscent of automated information extraction from buyer or producer paperwork, will free underwriters from these mundane duties and significantly enhance their capability.
Data on the level of want
But these information are solely as helpful as they’re accessible; data turns into much more beneficial and introduced to underwriters after they most want it. It’s particularly helpful for underwriters to have wanted information at their fingertips at key determination factors all through the underwriting workflow.
My colleague Michael Reilly describes this functionality as a “third-generation underwriting platform.” Such a platform enhances workflow and coverage techniques whereas containing all the info underwriters want for threat analysis. When built-in into the underwriting workflow, these clever and automatic platforms present underwriters with the info and insights they want, after they want them.
Transformational change underwriters search
We assume these platforms can present the transformative change to underwriting that time options to this point haven’t addressed successfully. Having information on the level of want is essential to underwriting transformation.
Third-generation underwriting platforms maintain the facility to eradicate time spent on information administration, and may even transcend underwriting by offering insights throughout the life insurance coverage worth chain. Such insights might, for instance, affect product growth and distribution by figuring out and addressing alternatives in new and/or underserved markets.
We invite you to learn our newest white paper, AI-powered Insurance: Automated Underwriting – Reimagining the life insurance coverage underwriting expertise for productiveness and income, to discover new methods to empower your underwriters. Please contact Michael or me to study extra.
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Disclaimer: This content material is offered for basic data functions and isn’t meant for use instead of session with our skilled advisors.