Insuranceciooutlook

5 Things CIOs must Consider while Opting for Underwriting Solutions

By Insurance CIO Outlook | Tuesday, August 27, 2019

Here are some tips that can help CIOs pick the best underwriting solutions for insurance firms.

FREMONT, CA: Technology has been a proven enabler for underwriting solutions, and financial firms, banking, as well as non-banking ones, have seen a gradual adoption of technology in various areas of functioning. Traditionally, a human underwriter had to do the job of risk assessment for customers looking to buy policies. But now, as a result of a tectonic shift in the insurance paradigm, CIOs in most organizations are turning towards modernized processes to drive revenues and enhance customer satisfaction while ensuring efficiency. Software solutions for underwriting are becoming a preferred option. As the potential of technologies such as artificial intelligence, machine learning, and natural language processing becomes prominent, CIOs are consistently putting efforts towards upgrading underwriting to the next level of automation. Here are some vital things CIOs should keep in mind while leading their firms towards better underwriting.

·  Budgetary Provisions  

The CIO has to take care of a variety of IT expenditures. As digitalization becomes the norm, and organizations evolve, allocating resources effectively can be tricky. Thus, making provision for underwriting solutions from the very beginning is preferable. An effective underwriting solution enhances the pace of operation, thereby creating opportunities for cost-cutting. In the long run, these solutions can give excellent returns on investment. Hence, a CIO should carefully draw up a budget which enables the development of proprietary solutions or subscription to third-party software.

·  Recognizing the Requirements

A wide range of underwriting solutions is available in the market today. Most of these solutions are designed to suit specific requirements. The CIO, must, therefore, look to determine which service providers' offering can help the firm enhance functioning. For banking firms, underwriting solutions involve lending automation capabilities that help banks process loans faster. For insurance firms, there are customized solutions for different policies like health insurance, life insurance, and property insurance. Insurance companies can choose from the ready-to-use solutions or the ones that provide consultative assistance with the development of underwriting processes.

·  Mobile App Facilities and Customer Satisfaction Criteria

Another critical aspect that CIOs should ensure while opting for underwriting solutions is that they should possess features that can be accessed with smartphones. As convenience and customer satisfaction become crucial for businesses to gain a competitive edge, companies are looking for solutions that optimize ease and accessibility. Thus, an ideal solution should have the features using which a customer can initiate, monitor processes, on their smartphones. In the case of insurance firms, risk assessment criteria should be incorporated into mobile apps so that clients can conveniently access services from any geographical location and minimize the need to visit physical facilities. For banks, underwriting facilities through mobile apps can help conduct the initial processes before lending remotely. Such facilities help banks to cut down on costs and impress the customers.

·  Customization

Availability of customization options is highly desirable. It is imperative that the CIO opts for only those solutions that can support processes even as business models undergo significant changes. It is essential to ensure that scaling up facilities should not be a problem and that compatibility should be broad. Whenever there is the development of a new product, the underwriting solutions must have the capacity to support it in all aspects.

·   Prioritizing Security

Underwriting involves the accumulation and evaluation of sensitive personal datasets of customers. While modernizing legacy systems gives significant advantages, it also exposes them to vulnerabilities. Thus, CIOs must not compromise with the security aspect while enabling sophisticated underwriting solutions. What is advisable is that companies opt for solutions that have been developed with security features that help them mitigate threats while protecting customer data simultaneously. Regulatory compliance is also crucial.

With these fundamental ideas, CIOs can embark on a journey to get the best underwriting solutions for their companies.  

Weekly Brief

New Editions