Understanding The Basics And Advantages Of Tele-underwriting

While automating the entire underwriting process makes it possible to enhance profits

for an insurance company, this may not be feasible for one that embeds paper-based processes. For such an insurance business, tele-underwriting can be a practical solution. This involves automating parts of the underwriting process. Understanding the way tele-underwriting works is necessary before you choose to implement this solution.

The contact centre staff members working at the insurance company accumulate the medical and non-medical information from the individual applying for insurance coverage in a telephonic interview. The questions, prepared by the IT department, depend on the type of coverage applied for. Computer based applications make it possible to reach underwriting decisions based on these details.

After you apply for insurance coverage, the trained and experienced sales staff members fix a telephone interview with you. This interview involves a set of questions aimed at determining the risks associated with you. The underwriting solution helps the sales team to assess the risks and determine the policy and premiums suitable for you. Specialised underwriters are available in case there is a complexity involved.

Why would an insurance company consider implementing such a solution? The advantages this solution offers for a business would give you an idea about why insurance companies have already implemented or are planning to implement this system.

Reduction in processing time: Traditional approaches to underwriting require time for processing from the application to the issuance of the policy. Accumulation of additional risk data via telephone and use of software for automated risk assessment and policy determination lessens this time.

Better disclosure opportunities: The positive effect of telephonic interviews to determine risks is evident in the disclosures by the individual applying for insurance. Moreover, as the time between risk assessment and policy issuance is minimised, changes in conditions are reduced as well.

Enhanced customer satisfaction: Disclosing personal, especially medical, information in a telephone interview is preferred by customers as it reduces the difficulty of revealing certain details. Moreover, the short time between application and policy issuance as well as the accuracy available ensures a good experience for the customers.

Low acquisition costs: Implementing the tele-underwriting solution does not involve much cost. Moreover, it does not require extensive training for use. The sales staff members are capable of handling most of the process, and underwriters need to get involved only when there is any complexity in the insurance processing.

Better intermediary experience: Discussing the personal life and medical details of an individual may be awkward for an intermediary. The telephone interview accumulates these details without any embarrassment or difficulty for the intermediary. Moreover, the quickened processing time ensures that they receive commission payments early.

Reduction in legal hassles: The telephone conversation between the individual applying for insurance and the contact centre staff member is recorded. This ensures that the insurance company has adequate evidence in its favour if a claim based on a disclosure gives way to litigation.

Choosing the right tele-underwriting solution for your insurance business is, however, necessary for achieving all these benefits.

by: Daniel Smith

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