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How automation underwriting changes

Underwriting is an essential process used by insurers to determine acceptable risk and prices that are appropriate for their clients. Given its impo

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Underwriting is an essential process used by insurers to determine acceptable risk and prices that are appropriate 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 this must be done quickly as consumers quickly buy insurance. For this reason, many insurance companies are accelerating their underwriting process through automation.

Underwriter
Photo credit: Gabrielle Henderson / Unsplash

An example of software that uses underwriting automation is the P&C insurance software by Earnix. This can ensure that insurance companies offer smarter insurance prices without delay. Learn more about how automation underwriting changes below:

Automatic underwriting provides better tracking and workflow

Like other businesses, understanding consumer behavior is also essential 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 gained traction in the insurance industry over the past few years.

Automatic endorsement helps track consumer needs and enhances customer experience. It uses user feedback and data to develop a more accurate customer profile rather than manual endorsement.

Underwriting resources are used more effectively

Instead of dealing with simplified spending products, your underwriters can work on more complex and valuable matters. Moreover, automation cannot completely replace people. Meanwhile, automatic underwriting systems do the simpler thing. This will allow you to utilize your human underwriters more effectively. Automated underwriting systems can also help pinpoint specific cases to different levels of underwriters.

Automatic endorsement enhances consistent decisions

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

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

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It refines product development

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

It improves service and visibility

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

Using an automated underwriting system can reduce the amount of time consumers spend on phone calls looking at the case status. This will help you provide a better customer experience and ease the workload of your agents.

Underwriting automation reduces the paperwork

Automating the underwriting process can help you reduce paper usage. It can also help reduce hand deliveries, image costs and the rate of manual failure.

Automated underwriting software uses digital data accessible in the cloud instead of collecting data on paper applications. Apart from that, it has an underwriting rule engine that ensures that there will be no misread handwriting and no fields will be left blank.

Take away

Modernizing the underwriting process is essential for companies that want to keep up with a highly competitive industry. Insurance companies that do not use automation for their underwriting process should therefore consider jumping on the bandwagon.

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

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