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3 Challenges in Underwriting that AI can Solve

By Insurance CIO Outlook | Wednesday, January 08, 2020

The ongoing evolution in insurance processes is ably assisted by advancing applications of artificial intelligence.

FREMONT, CA: The usefulness of modern technologies arises from the challenges they help overcome. The insurance sector is addressing numerous disruptions as it navigates the terrains of digitalization. Underwriting, which forms the central aspect of insurance services, requires a makeover. Artificial intelligence is the key to transform the traditional elements of underwriting and convert it into a modern capability. Numerous functionalities become feasible with the adoption of artificial intelligence. The current article discusses the challenges that insurance underwriting can overcome by the strategic use of artificial intelligence technology. 

• Assisting Inexperienced Underwriters

Insurance companies have to face the hurdle of inaccurate and inefficient underwriting every time a new, inexperienced underwriter joins the team. There are several aspects of underwriting that might seem complex to any beginner. An AI-based underwriting solution can extend assistance by automating reiterative tasks and reducing the time taken by manual methods. Be it application submission, or assessment of provided information, AI-backed solutions can come in handy and make work simpler for new underwriters.

• Generating Hidden Insights from Data

Insurance companies have always been data-centric. With increasing sources of data, underwriting can get better. However, for that to happen, insurers need to leverage the right set of tools. AI-backed tools show excellent results in sorting through structured and unstructured data to provide deeper insights into all areas of underwriting. Underwriters get the chance to conduct quick verifications and understand risks with the help of reports created by AI solutions.

• Eliminating Inaccurate Quoting

The conventional process of arriving at quotes involved time-taking calculations and inaccurate results. The arrival of artificial intelligence promises better quotes. An AI-backed solution can take into consideration minute details while assessing coverage and exclusions. Advancement in technology now enables insurers to incorporate quoting mechanisms into company-specific policy systems. This flexibility makes quotes personalized and better.

As insurance providers ramp up AI-based underwriting, there will be a dynamic growth in the quality of products and services, resulting in improved market performance.

See Also: Top Insurance Technology Solution Companies

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