Innovative Underwriting Approaches Promising Smart Future of Insurance!

By Insurance CIO Outlook | Tuesday, August 27, 2019

Adopting technological advantages influences the insurance market, digitalizing the underwriting segment to prioritize accuracy and speed.    

FREMONT, CA:  Numerous insurtech advancements in the global market are widely accepted to target new customers and optimize underwriting, overcome insurance risk, handle claims, and help in building long term relationship with the customers. Advanced technologies offer the insurance providers in-depth insights about data to calculate and help the customers avail error-proofed policies. Paperless application processes allow the digital insurers to smartly consume data, verify the authenticity of the claim, and eliminate any chances of human errors. Standing at the edge of future insurance, the industry opens doors for the technical implementations and solutions to top the competitive market of the digital era.

· Artificial Intelligence (AI)

Artificial Intelligence (AI) has already created an impressive position in the global industrial market, which includes the sector of insurance too. The insurtech organization based on the advantages of artificial intelligence provides an automated underwriting process. It smartly updates analysis and optimizes risk management insights for more accurate policy recommendations. Insurance industry takes benefits to improvise decision-making stages for personal loan underwriting and makes it easier for the applicant to process easily and quickly.

Check This Out: Top Underwriting Tech Companies

The implementation of intelligent technologies in the industry work processes can alter underwriting flow and advance the whole method for experience and engagement of the customers. It powers the insurance providing organizations to extract insights from different information sources, automates demand analysis, and generates new product offerings. It also improves price and policy rating, personalizes products, and helps providers to interact with the employees in a convenient language. Deployment of the technology across the insurance sector also allows the professional to train intelligent machines and perform more effectively and accurately.

· Cloud-Computing and Management

Adopting cloud computing offers massive opportunities for the insurance industry with digital solutions and to achieve long-term goals of success and growth. The sector generates and works with extensive data and processes, while insurers consistently put efforts to increase customer engagement and deliver insurance services. Cloud-based applications provide an all-round approach which includes the improvisation of marketing, delivery, technology, and customer services.

The advanced technology-based insurance platforms avail extensive storage facilities which can be instantly accessible, regardless of the different source channels. The collaborative feature allows members from various departments to communicate with customers, agents, and brokers. Cloud computing and management services deploy with the core system cheaply and affordably and support critical functions of underwriting. The real-time information tracking through connected mobile devices or applications support the underwriters to document the requests efficiently for the claim processes. In the recent future, cloud-based innovations are expected to create more opportunities for the industry and develop more affordable and accessible Software as a Service (SaaS) platform.  

· Advanced Analytics

Advanced analytics solutions in the insurance underwriting help the professionals to analyze specific risk parameter of the offered policy, customer portfolio, and customer segments. The comprehensive analytics offers the insurance underwriters to handle new cases with accurate information and take lesser time to underwrite medical and non-medical claims. Powered by all-around data accessing capability brings additional insights of locations, individual lifestyle patterns, and often life incidents. The in-depth analysis helps the insurance underwriter to process precisely and decide justified claims by the customers. The high-tech approach covers pricing, rate marketing, risk scoring, and lifetime value pricing by providing historical data to the underwriters. Access to complete information makes fair decisions and speed-up sustainable pricing for underwriting profitability.

Majorly, big data analysis offers excellent reporting, descriptive analytics, predictive analytics, and prescriptive analytics. Integrating the smart analytical advantages allow the insurers to view digital underwriting reports while highlighting the segments of claims, channel management, and policy profitability. It mines down the case level information and highlights different patterns and combines the stories to study and create predictive policies. The underwriting business model helps to collect more premium and investment income by using analytical data. 

· Blockchain

The blockchain impact has already shown its potential in the global market for different sectors, equally impacting the current state insurance technology. Accepting blockchain technologies by the insurance providers has created a secure underwriting infrastructure from the distribution to the pricing processes. Powered by different features and mainly high security, the insurance industry can leverage the blockchain benefits to offer seamless and faster customer experiences. Blockchain integrated insurance applications can provide long-term strategic benefits with low operational costs, reduced risk of forgery, increase automation process, decentralized transaction, and improve customer satisfaction.

Blockchain’s feature of the smart contract can automatically execute critical terms of the insurance contract, initiate the claim, and expedite the settlement. The quick opportunities created by technology improves the core processes across the insurance value chain, underwriting, and claim management. It smartly reduces the fraud claims by verifying customers and track record instantly, which are tough to identify manually after the document modification. The decentralized infrastructure enables peer-to-peer transactions, which are less expensive to the organization and even faster from the previous methods. The combination of smart contract and secured payments allow the industry to achieve high customer satisfaction level.

While technology continues to deliver next-generation solutions to different market segments, the insurance industry seems to take most of the advantages. The powered combination of different techniques creates an effective digital platform for both insurance professionals and customers to offer and access fair policies, claims, and services. The high-tech insurance services help the insurance organization to accelerate in the global market and raise the competition bars.  

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