What is important when planning/choosing a new underwriting system?
When planning and choosing a new underwriting system, it is important to select a system that can adapt and scale to handle increased pressure. This is because the insurance landscape is being disrupted by technological advancement, new distribution channels, and shifting data sources. Insurers must therefore implement more sophisticated methods for constantly evaluating, selecting, and integrating new data sources.
A new underwriting system must be adaptable enough to introduce new workflows and advanced data sources, while still connecting to your existing systems. It should boost productivity and efficiency for your business, rather than create another bottleneck.
5 considerations for planning/choosing a new underwriting system
1. How will the new system reduce time, effort, and manual labour? The underwriting process is notoriously time-consuming – and time spent on manual underwriting means lost productivity and higher costs for your business. Underwriters spend most of their time on non-essential tasks such as manually gathering and entering data for submissions and renewals, as well as issuing policies. However, they could spend that time on higher-value activities.
Investigate whether the new underwriting system will reduce the time, effort, and manual labour of your staff. Does the system offer automation that will streamline internal processes? When the burden of administrative tasks is reduced, underwriters can apply their skills elsewhere, boosting the value of your business offerings.
2. Does it integrate AI? It is advisable to plan and select a new underwriting system that integrates AI. While automated processes won’t replace the human underwriter, sophisticated automation that integrates AI can reduce basic administrative tasks. This enables the underwriter to focus on high-impact tasks that involve analytical thinking, reasoning, and problem-solving.
When done well, integrating AI into your insurance underwriting system can add significant improvements to your underwriting processes and performance. Does the new system enhance rather than replace the human touch in underwriting? Combining the intelligence of both humans and machines will help you remain competitive.
3. Does it have data security measures in place? When planning and choosing a new underwriting system, it is important to assess its data storage capacity and ability to handle the volume/complexity of your data. Data security is paramount; you do not want accidental data losses when transitioning from one underwriting system to another.
Before you decide, assess whether the new system has suitable data security and disaster recovery mechanisms in place. Will it safeguard your sensitive data against threats and are there fail-safes in place to prevent significant data loss?
4. Will it reduce inefficiencies? New and innovative underwriting systems can help to reduce inefficiencies and streamline underwriting processes. Currently, underwriters spend a large amount of time looking for the data they need and pulling it together to assess risk and make underwriting decisions. This creates inefficiencies and delays in the underwriting process, inhibiting the underwriter’s ability to write new business.
When considering a new underwriting system, look at its specific offerings and benefits. Once implemented, will the software help to break down barriers in workflows and reduce backlogs? Will it improve quoting speed and underwriting efficiency, even when underwriting resources are stretched? If the answer is yes, the platform is likely to accelerate the underwriting process.
5. Will it boost responsiveness? Higher business volume today means faster responsiveness is needed. Underwriting workflows need to accommodate advanced data sources as they become available. The underwriting system needs to be part of the solution and way forward.
So, will your new system boost responsiveness to data streams and integration, as well as shifting customer needs? By bringing together data with automation and unified claims, you can improve responsiveness and connectivity for the customer.
Underwriting systems play a critical role in insurance, enabling insurers to assess risk and make informed decisions on policy issuance. Planning and choosing the right underwriting system is vital for maximising operational efficiency, improving underwriting accuracy, and enhancing business growth.
How can Gratex help?
At Gratex, the mission is to drive digital transformation for insurance underwriting agencies across Australia and New Zealand. Gratex provides customers with the freedom to grow and the agility to innovate.
Find out how Gratex can help your underwriting agency plan and choose a new underwriting system with the industry-leading platform, UPM+ Cloud.