Staying ahead of your competitors is necessary for success of every business. The same applies to insurance businesses as well. For this, an insurance company needs to provide fast and accurate service for its customers. The question is – how does an insurance company ensure this? Competitive price combined with cost reduction is essential for this.
How is reduction in the cost involved in insurance application processing possible? The recent trend in the insurance industry is to opt for an automated underwriting solution. How is this of any help? A solution that automates the underwriting process saves costs wasted on the repetitive tasks associated with the process.
There is no one system that fits all insurance businesses. You need to find one that suits the specific requirements of your business. The existing business processes and operations play a significant role in your selection of the right automated underwriting system. Here are the options you have in this regard.
Place the tools at the point of sale: If you are planning to automate the entire underwriting process, this may be a suitable option. How does this system work? The concept is simple; the system provides a user-friendly interactive interface for the customers applying for insurance products and policies.
The customer uses this interface to fill in the relevant details and apply for particular policies. The risk assessment and decision making process are completed by the automated system at the point of sale. The sales staff members are capable of handling the processing; professional underwriters only get involved in complex matters.
Automate the back office: In certain circumstances, an insurance business is too much embedded in paper-based processes. For such businesses, automating the entire underwriting process may not be a feasible option. They need to opt for automating parts of the underwriting process instead.
How does this work? In these systems, the trained and experienced contact-centre staff members use different means for interviewing customers and accumulate relevant details. The information is then fed into the system, which assesses risks associated with the applicant and determines the right policies and premiums based on this.
Combine the different elements: A hybrid solution that merges the characteristics of the different systems for automating the underwriting process may be appropriate for certain insurance businesses. The contact-centre staff members handle the application processing with the use of point of sale life insurance tools.
While the simple and straightforward applications are completed with the automated tools, a team of professional underwriters are available for handling applications that involve complex issues. These systems are suitable for all insurance companies, as they prove to be advantageous for shifting from paper-based processes to automated processes.
How do you know which type of automated underwriting solution is suitable for your business? The first task is to evaluate your present processes and determine your requirements. This would give you an idea about whether complete or partial automation of the underwriting process would be appropriate for your insurance business.
Check out the features and specifications of the different underwriting solutions to understand which one corresponds to your requirements.
Daniel Smith is a professional underwriter. He provides tips and suggestions for businesses looking for automated risk assessment and decision making systems. If you need more information regarding underwriting automated solution, he suggests you to visit http://automation.munichre.com/for further details.