Underwriting is a necessary process used by insurers to determine acceptable risk and prices suitable for their clients. Given its importance, it is strategic for insurance companies to improve underwriting to keep up with their competitors. However, effective underwriting requires a large amount of data, and it should be done fast as consumers buy insurance quickly. For this reason, many insurance companies speed up their underwriting process through automation.

Underwriter
photo credit: Gabrielle Henderson / Unsplash

An example of software that utilizes automation for underwriting is the P&C insurance software by Earnix. It can let insurance companies offer smarter insurance prices without delay. Learn more about how automation is changing underwriting below:

Automated Underwriting Provides Better Tracking and Workflow

Like other businesses, understanding consumer behavior is also vital for the insurance industry. Brands observe and take note of consumers’ preferences to predict risks effectively and determine the right products to offer. For this reason, automated underwriting has been gaining traction in the insurance industry in recent years.

Automated underwriting helps track the needs of consumers and enhances customer experience. It utilizes user feedback and data to develop a more accurate client profile than manual underwriting.

Underwriting Resources are Used More Effectively

Instead of handling simplified issue products, your underwriters can work on more complex and valuable cases. Besides, automation can’t wholly replace people. Meanwhile, automated underwriting systems do the simpler ones. It will allow you to utilize your human underwriters more effectively. Also, automated underwriting systems can help designate particular cases to various levels of underwriters.

Automated Underwriting Increases Consistent Decisions

Underwriting systems help make more consistent decisions with the rules automatically applied in particular cases. These systems impose rules according to the insurer’s philosophy and guidelines. At the same time, it triggers escalation actions and messages when there are exceptions.

Consistency reduces confusion among insurance agents and marketers about individual underwriting decisions.

Using data automation software

It Refines Product Development

Your company’s growth relies on effective product development. Fully adopting automation in your insurance underwriting process will allow you to develop new products that suit consumers.

It Enhances Service and Visibility

Automated underwriting systems provide real-time case status data through dashboards and visual tracking. These are accessible through the insurance company’s agency management software or web portal.

Utilizing an automated underwriting system can reduce the time spent on phone calls by consumers wanting to check on case status. It will help you provide a better customer experience and ease the workload of your agents.

Automation in Underwriting Reduces The Paper Process

Automating the underwriting process can help you minimize paper use. It can also help reduce manual handoffs, imaging costs, and the rate of manual failure.

Automated underwriting software utilizes digital data accessible in the cloud instead of gathering data on paper applications. Aside from that, it has an underwriting rules engine that ensures there will be no misread handwriting and no fields are left blank.

Takeaway

Modernizing the underwriting process is vital for companies wanting to keep up with a highly competitive industry. So, insurance companies that are not using automation for their underwriting process should consider jumping on the bandwagon.

A fast, consistent, and effective underwriting process will improve customer satisfaction.