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What Are the Top Six Benefits of an Automated Underwriting System in Insurance?

Earnix Team

March 6, 2024

  • Underwriting
Automation concept as an innovation, improving productivity, reliability and repeatability in technology and business processes.

Manual underwriting can be a complex and time-consuming process that inevitably increases operational costs. Without addressing these challenges and implementing new innovations, your underwriting processes can become a bottleneck, preventing you from making fast, informed decisions to stay current with changing market conditions and generate higher revenues and profits. 

In contrast to manual rules-based processes, an automated underwriting system uses advanced analytics and powerful algorithms to evaluate and minimize risk and drive decision-making. Today’s cutting-edge technology delivers other powerful capabilities, including self-learning algorithms that automatically adjust decision-making over time as well as A/B testing and simulations to help underwriters understand how changes can affect business results.

Automated underwriting systems will become more intelligent over time, especially as AI and ML continue to evolve and provide new breakthroughs. Additionally, automating underwriting processes can help you significantly accelerate deployment times – critical in winning new business and gaining a head start over the competition.

For even more insights, we’ll look at the top six benefits of automated underwriting systems below.

Why Move Away from Manual Underwriting?

Manual underwriting processes are not as efficient as they should be, which affects underwriters and other employees. Recent research shows that the average underwriter spends 40% of their time on administrative work – time that could be better served on actual underwriting. Additionally, manual underwriting requires too much time and effort from IT: coding new rules, updating models, and generally maintaining whatever technology is in place.

Yet by automating underwriting, you’ll reduce manual steps and once-redundant tasks so your employees can spend more time on higher value, more strategic parts of the business. In turn, faster, more efficient workflows lead to better customer service and new opportunities to grow your business.

Automated insurance underwriting trains on historical data to improve efficiency and accuracy in a more advanced way than ever before. Automation uncovers data points that provide insight into customers, processes, and policy rules to increase profits and reduce potential human error.

Six Benefits of Automated Insurance Underwriting

Traditional underwriting usually consists of complex, rules-based decisions, legacy technology ill-equipped for modern use, and siloed processes. Automated underwriting systems successfully address all of these challenges. 

The following are six ways you’ll benefit from automating underwriting processes with Earnix.

1. Integrated Workflows

Underwrite-It from Earnix integrates pricing and rating into the underwriting process, placing your entire workflow into a single platform and turning it into a single, collaborative process.

By integrating pricing and rating with underwriting, you’ll eliminate the need for interdepartmental handoffs (and delays) and significantly accelerate time-to-market speed and enable internal teams to make the best decisions when it comes to risk, price, and profitability.

2. Easier Rules Management

With Underwrite-It, you can manage all rules in one place. Not only does this enable underwriting teams to update and deploy rules by themselves, but it reduces the burden on your IT team. You can empower business users to update models, deploy changes, and manage once-complex logic through the use of table-driven and tree-based representations.

Underwrite-It helps you reduce, even eliminate IT’s active role in the process. Not only does this save valuable time, but it improves productivity and enables all employees to do what they do best – focus on high-level, more strategic tasks in line with specific business objectives.  

3. More Advanced Technology

AI and ML can now help you adopt new strategies, leverage data insights, and gain a deeper understanding of customers and prospects. For example, AI algorithms can analyze vast amounts of data – from a wide range of sources – to identify previously undetected patterns and trends and better assess risk.

By combining traditional rules-based underwriting with advanced ML and simulation, Underwrite-It improves decision-making related to potential underwriting changes.

4. Better Visibility into Potential Outcomes for More Precise Predictions

Automating your underwriting lets you make better-informed decisions quickly and with less effort. For example, insurance technology, such as Underwrite-It, can provide a comprehensive, real-time view of risk profiles to help underwriters predict risk with much greater accuracy.

Underwrite-It gives you new ways to model various risk and price scenarios. As a result, you can make more informed decisions, adjust pricing models dynamically, and assess risk on an individualized basis. In turn, this helps you compare underwriting strategies and use pricing data to simulate how pricing and underwriting changes will affect portfolio outcomes.

5. Increased Revenue and Profitability

More analytical underwriting can help you make the best decisions and lead to higher revenue and profits. You can also understand how various decisions will impact important KPIs and metrics, such as conversion, profitability, and retention.

6. Greater Efficiency and Agility

Say goodbye to past tedious processes that often resulted in changes needing days, weeks, and even months to implement. Underwrite-It fully automates underwriting decisions and manages all underwriting rules in one place.

By empowering business users to make, test, and deploy changes, you’ll increase efficiency, deliver new agility, and improve productivity – all of which positions you to win new business and gain a real competitive edge.

Automate Your Workflow with Underwrite-It from Earnix

It’s time for the insurance industry to embrace technology and move beyond antiquated manual processes. Earnix Underwrite-It combines pricing and rating with underwriting process to help you reach better underwriting decisions in less time—all backed by data.

Learn more about what Underwrite-It can do for you and your team today.

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Earnix Team