The insurance sector is flooded with data from a variety of sources including, reports on property values, credit scores, and inspection reports.
This leaves underwriters with enormous data to sift through, which takes time thereby increasing operational costs. Hence, it becomes important to leverage technology that provides more tailored information regarding risk.
Digital technologies such as predictive analytics, cognitive computing, artificial intelligence (AI), and robotic process automation allow the underwriter to collect information and make prompt, informed decisions. By orchestrating various technologies that can facilitate digital labour and analyze customer behaviour data, insurers can ease the burden on underwriters.
A growing number of insurance companies are seeing the benefits of adopting digital technologies; driven by customers demanding self-service where they can have more control of the process. For instance, customers can take and send their photographs electronically to the property inspector for evaluation rather than scheduling an appointment.
Cognitive computing can further makes it easy to quickly assess various data sources and provide an analysis that allows the underwriter to take informed decision. In addition, chatbot technologies can further assist underwriters with their risk evaluation.
Stepping into the New Era
Shifting gears in the digital era is not without some complexities. Companies have to change their processes and scale up the workforce to handle more complex roles, leaving data gathering to technology.
Some of the insurance giants are starting to embrace digital technologies to ease the underwriting process. As a result, both businesses and their workforce are getting benefited. For instance, AI-enabled tools use complex algorithms to arrive at decisions and carry out underwriting processes. This way, insurers can focus on more challenging tasks rather than just gathering data.
In a Nutshell
Not just insurance carriers, but customers are also looking for a digital environment where they can manage their claims online. Whatever approach insurers choose to follow, they need to take advantage of digital technologies. Else, they will be left behind by their competitors that are in a position to accept risk faster.
In order to sustain competitive advantage, insurers must evaluate their underwriting holistically, and integrate technology solutions like analytics, machine learning and robotics that allow them to enhance efficiency and accuracy.