Finding The Automated Underwriting Solution Compatible To Your Business
Profitability, for an insurance company, is dependent on a number of factors
, of which the success of the underwriting process is an important one. This process involves the life insurance risk analysis associated with the individual applying for insurance, determination of the policy and premiums right for the individual case and generation of the insurance contract. In todays competitive market, every insurance business needs to focus on the speed and accuracy of this process to ensure customer satisfaction, a key element of success for any business.The traditional approaches to underwriting, however, make it difficult to achieve this objective. The demand for instant underwriting decisions and high levels of service has made it necessary to alter this traditional approach to the process. Automating the entire underwriting process, or parts of it, may be the solution suitable for an insurance company. Different methodologies are used in this regard. The type of solution suitable for your company depends on the specific requirements of an insurance business as well as the implementation time and cost associated with it.
If your objective is to complete the underwriting process without any human intervention, you need to consider a solution that automates the entire process. This is possible with integration of the automating tools at the point of sale. Accumulation of information from the applicant and issuance of the insurance policy is possible with the use of automated risk analysis. Opt for a system that is capable of using multiple distribution channels including offline and online ones. Such data-centric, event-driven solution would be able to provide instant underwriting solutions for the applications.
Automating the entire underwriting process may not be feasible for an insurance company that involves paper-based processing. For such an insurance carrier, it is better to opt for tele-underwriting solutions. These automate the repetitive tasks associated with underwriting but require human intervention for reaching an underwriting decision. The solution, in such cases, work as support for the underwriters. The accumulation of information and initial risk assessment is automated; however, the generation of the policy requires the expertise of specialised underwriters.
Achieving the best results, however, is possible when an insurance business opts for the hybrid solution. This incorporates the advantages of both the aforementioned systems. The use of tools of automation at the point of sale ensures that the sales staffs are capable of handling majority of the insurance applications. Moreover, tele-underwriting solution available for more complex cases makes it possible to handle these as well. While straight through processing is available for all applications, specialised services are also available for applications involving complexities.
The ups and downs in the global economy make it necessary to find a solution that offers accurate results speedily. Ensuring this is possible only when the repetitive tasks associated with underwriting are automated. It is possible to free specialised resources, employ them to other areas, and boost productivity with the implementation of the automated underwriting system. Cutting down costs associated with these tasks works in favour of the business as well.
by: Daniel Smith