Many insurance companies speed up their underwriting process through automation. They do so as consumers buy insurance quickly. Underwriting is a necessary process for insurers since it is when they determine acceptable risks and suitable prices for clients. Given its importance, it is strategic for insurance companies to improve their underwriting process to keep up with their competitors.
Effective underwriting also requires a large amount of data. The P&C insurance software by Earnix is an example of software that utilizes data analytics and automation to speed up insurance companies’ underwriting process. 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. Automating the underwriting process will allow you to utilize your human underwriters more effectively and 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. They impose rules according to the insurer’s philosophy and guidelines. At the same time, they trigger escalation actions and messages when there are exceptions.
What makes consistency important is that it reduces confusion among insurance agents and marketers about individual underwriting decisions.
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. As a result, it will allow you to 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. Aside from that, it reduces 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. It also has an underwriting rules engine that ensures there will be no misread handwriting and no fields are left blank.
It Refines Product Development
A company’s growth relies on effective product development. Fully adopting automation in your insurance underwriting process will allow you to develop new products that will suit your target consumers.
Takeaway
Modernizing the underwriting process is vital for companies wanting to keep up with a highly competitive industry like the insurance industry. Companies that are not using automation for their underwriting process should reconsider because a fast, consistent, and effective underwriting process can help improve customer satisfaction.