Technology is reforming the underwriting process in a way that would be unfathomable if you rely on extensive manual caliber for each task. Usually, the underwriting world has been reluctant to make new changes. They have a process — and it works. But to accelerate growth, underwriters have been bracing new technologies and gaining a competitive edge.
If you strike the right balance between manual and digital work systems. It’ll get easier to analyze, process, and accelerate the underwriting process. Underwriters are an inherent part of insurance companies. Often — they find themselves raveling between spreadsheets, department heads, and multiple tabs to find different data to finalize a single exchange.
No more — we’ve assembled the reasons why you should create technological workflows and shred those extra hours of work for your underwriters. If efficiency and productivity are your success indicators. Read how this dramatic technological shift will change your underwriting framework.
- Improved Access To Client’s Information
One of the main functions of underwriting and insurance processes is access to client information. Every client has a different policy, premium, claims, and cover. Since the advent of technology, it is easier to keep an active check on the health and movements of a client. For example, smartwatches follow the trajectory of the heartbeats of a person. If the same person is a heart-risk client, you can check their smartwatch records for risk assessment and verification.
It’s imperative to know about your clients because:
- Helps set up an accurate pricing model
- Helps define high-risk clients
- Helps find if the risk is growing beyond the acceptable limit
- Helps verify the underwriter if the client is worth onboarding
- Segmentation and Targeting Specific Groups
Underwriters define the client that fits the services you’re offering. With the help of technology, they can extract data from your warehouse and feed it into CRMs or ETL platforms to manipulate and target them based on their actions, interests, and dislikes.
Segmentation is a more condensed approach where you further divide the clients of the same insurance interests under one faction and create policies for them. For targeting, you can leverage actions like — Opening rates of emails, the bounce rate for a certain web page on your website, pre-define the risk that the insurer is looking to get covered, etc. In this way, you can get a head start on your pitch and acquire the client by using their language.
- Keeps Extensive Records Secure With Encryption
If you’re tired of haggling between heaps and heaps of unorganized paper archives, technology will save you. With the deployment of cloud technology, it is easier to store terabytes of data securely over digital infrastructure. 49% of companies extensively deploy cloud infrastructure to keep their data distributed amongst their team members but restricted from unwanted access.
Encryption comes in many forms, some of them are:
- Passwords
- Smart key
- Biometric authentication
- DES/3DES Encryption (Uses 56-bit and 3 56-bit keys for security)
Cybersecurity is the new world lock and key which helps keep your data safe and give it more accessible to anyone inside your team — anywhere and anytime.
- Scalable
Digital underwriting helps to remove the traditional block of in-person meets, telephone sales calls, etc. It helps to create in-demand services for the clients, keep real-time updates, manual tracking, and risk analysis.
This scalability gives access to the customers to be aware of their policy premium, due dates, claims amount, etc. To acquire any information, the client won’t have to visit your office, and you won’t have to set up back-to-back meetings. It also removes ambiguity and helps you better serve the needs of your clients.
Underwriting, But More Simplified
The world is evolving and so is the insurance industry. With greater exposure to risks, lower life expectancy, and changed health habits, you also need to keep up with the trends.
Underwriting a client under your company’s name and selecting the best fits is now more seamless and error-free than before. With the human-Ai models involved, insurance selling and buying have become more systematic and predictive. Your underwriters can ditch the boring, repetitive tasks and spend more time creating plans for better acquisition models.