Vice President Product Strategy StoneRiver, Inc.
What are some of the transformative technologies that insurers will need to improve underwriting techniques?
Obviously automated underwriting systems are transformative in how carriers can evaluate risk. But there are several aspects to assess when addressing the improvement of underwriting techniques. Automation is critical to meeting industry purchasing shifts that are solidly rooted in responsiveness to customers and agents.
Some items may seem to be intangibles but, when weighed overall, are very tangible. For example, consider the absolute necessity of reliable, consistent assessment of risk. While reliability and consistency may initially be considered a side benefit of automation, they are indispensable to ensure and support the underlying risk pricing.
What are some of the technologies that enable insurers to deliver real-time, or near real-time, underwriting decisions, and why is speeding up the underwriting process important?
Direct to consumer products are becoming critical as carriers compete for the millennial market. As carriers enable consumer-facing technology, the key performance indicator lies in reliable decisions delivered in minutes. Online consumers want to research, select and purchase insurance in one seamless interaction. Meeting that demand is critical to success.
For certain insurance products, ‘Fast Data’ such as Medical Information Bureau, Prescription Histories and Motor Vehicle Reports can be ordered, received and assessed by automated underwriting systems in seconds. Additional ‘Fast Data’ sources such as Electronic Health Records, financial data, and quick payment methods are becoming more readily available.