Can underwriting technology help insurance companies meet consumer expectations? – InsuranceNewsNet

While the insurance industry has often been called “a laggard,” according to one 2021 Insurance Business Article, it has not always been so. Life insurance companies were early adopters mainframe technology in the 1950susing emerging applications to facilitate actuarial work and premium billing.

In fact, early adoption is part of the problem. Many established insurers have invested heavily in insurance innovation in the past. Today, they’re mired in a legacy that makes accelerating digital adoption difficult. However, to meet the expectations of tech-savvy consumers, insurance companies must improve transparency, personalization and ease of use or risk losing market share to lean startups offering more insurance options. friendly.

How is underwriting technology helping insurance companies meet consumer expectations?

Consumers expect transparency in the underwriting process.

Personalized underwriting platforms allow policyholders to review their insurance portfolio, file claims, and receive policy updates at any time, providing a greater sense of control and transparency that consumers expect. ‘wait.

Consumers expect personalized insurance products.

Underwriting technology uses data enrichment and advanced analytics to provide personalized coverage recommendations, risk reduction advice and more. Artificial intelligence and machine learning allow insurance companies to offer individual personalization to each customer, a feat that would be impossible with traditional insurance underwriting processes.

Consumers expect ease of use when researching and selecting insurance products.

Traditionally slow and painful payment and claims processes are just a few clicks away when automated, and insightful AI guidance simplifies decision-making for consumers who just want to buy insurance and get back to their Doritos and Netflix.

Consumers expect human help when chips are down.

One of the biggest benefits of a custom underwriting platform is the new freedom it gives once-bogged underwriters to respond to customers when the going gets tough. Highly skilled agents have the ability to leverage both human intelligence and AI to create value for customers and deliver more attractive returns to stakeholders.

Bridge the gap between customer expectations and insurance offerings, and win in the insurance market.

In insurance, the implications of a world focused on immediacy, profitability and convenience are already clear. Insurers are leveraging more complex data sets to refine their practices. Data collected by vehicles on driving habits could be used alongside driving records to set rates in the future.

Imagine the possible implications of sharing big data on health insurance rates. Could purchases deemed “unhealthy”, such as alcohol and cigarettes, be used to justify higher health premiums? Could buying a chainsaw with a credit card have an immediate impact on your risk rating for home insurance liability considerations? It sounds Orwellian, although perhaps not too far off. Suffice it to say, insurance companies will continue to mine all the data they can.

Similarly, insurance customers use the same data structures to inform their insurance purchases. It has never been easier for consumers to build insurance portfolios tailored to their wants and needs. Compare vendors and compare plans while deciding if the application or system will work the way you need it to. But all the data-driven perks and discounts in the world mean very little when the customer doesn’t trust the platform they’re running on.

Underwriting Automation: It’s Here to Stay

In the world of insurance underwriting, automation is improving the overall workflow of insurers by improving speed and efficiency, adapting to changing business needs, reducing human error and improving roles, responsibilities and overall team output.

Embrace the disruption of automation.

Commercial underwriting is a good starting point for your plan to embrace automation disruption. We’ve created four simple steps insurers can take to put automation to work:

  • Identify where you stand in the underwriting areas. Can you use upgrades and want to save time, money and resources? If you answered “yes” to any of these questions, find out which issues can be resolved with automated underwriting solutions.
  • Train your teams and ask each role (underwriters, managers, and product managers) to identify areas that can be automated.
  • Communicate the plan so everyone is on the same page.
  • Contact an experienced technology provider for a consultation on solutions to your automation needs.

Don’t get left behind. Automation is here to stay, so implement a strategy now to advance automation.

Jesse Gospodarek is an independent sales and marketing consultant with Management Research Services, Milwaukee. He can be contacted at [email protected].

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Kristan F. Talley