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Life insurance companies are looking to increase underwriting efficiency and improve risk assessment by collecting more data and investing in new digital processes.
A new Accenture Research Smart Underwriting survey of more than 500 underwriters shows that insurers are prioritizing the use of data, as well as the adoption of robotic process automation (RPA) and modern underwriting platforms. These systems use a variety of data sources, including non-traditional ones such as social media and health and wellness apps, in addition to traditional ones to provide deeper and more useful information.
Working together, these new technologies can not only improve underwriting efficiency, but also create new opportunities by extracting more value from a deeper pool of data. This is good news for underwriters as it allows them to take a closer look at risk than before.
The Need for Efficiency
Improving underwriting efficiency is a key challenge for insurers as our research shows that new technologies are actually resurrected burden on underwriters. They told us that technology has had a positive impact on their underwriting efficiency, but now up to 40 percent of their time is spent on non-core administrative tasks such as data entry and collection.
Our research shows that insurers are looking to improve underwriter efficiency by investing in technologies such as AI and natural language understanding/processing (NLU/NLP). New features, such as automatic data extraction from client or manufacturer documents, will free insurers from these routine tasks and greatly expand their capabilities.
Data at the moment of need
But this data is only as useful as it is available; information becomes much more valuable and is provided to underwriters when they need it most. It is especially helpful for underwriters to have the right data at hand at key decision points throughout the entire underwriting workflow.
My colleague Michael Reilly describes this capability as a “third generation underwriting platform.” This platform improves workflows and policy systems and contains all the data underwriters need to assess risk. When integrated into the underwriting workflow, these intelligent and automated platforms provide underwriters with the data and information they need when they need it.
Transformational change underwriters seek
We believe that these platforms can enable transformational changes in underwriting that have not yet been effectively implemented by point solutions. Having data at the right time is key to underwriting transformation.
Third generation underwriting platforms can reduce the time spent on data administration and can even go beyond underwriting by providing information across the entire life insurance value chain. Such understanding may, for example, influence product development and distribution by identifying and exploiting opportunities in new and/or underserved markets.
We invite you to review our latest white paper, AI-Driven Insurance: Automated Underwriting – Rethinking the Underwriting Experience of Life to Improve Productivity and Profit, to explore new ways to empower your underwriters. Please contact Michael or me for more information.
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Disclaimer: This content is provided for general informational purposes and is not intended to be used as a substitute for consultation with our professional advisors.
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