- By Andy Flower
- Published 12/5/2012
Before you incorporate an automated underwriting system in your insurance company, you need to understand that there is no one size fits all solution in this regard. You need to make sure that the system you choose is flexible enough to adjust to modifications whenever necessary. How does this affect the benefits? How do you determine whether a system is flexible? Here are a few things you need to bear in mind to ensure this.
Does it fully or partially automate the underwriting tasks? Different insurance companies may have different business processes. If your present business processes are entirely paper-based, a move into complete automation may not be possible. In such a circumstance, Tele-underwriting may be a better option. However, the system must also provide the scope to automate the entire underwriting process later.
Does it accommodate your growing business needs? If you plan to expand your business in the future, make sure you choose an underwriting system that can scale accordingly. For example, if you currently work in the local insurance market but plan to enter the national insurance market soon, you need to find a system that can handle the increase in business. If the system is incapable of this, you may have to opt for an upgrade with this change.
Does it have room for changes in policies and procedures? The policies and procedures of work in different insurance companies vary. The underwriting system must have the flexibility to adjust to these changes. Before you choose a particular system, enquire about the way it could be set up according to the policies and procedures of your company. This will prevent waste of time and money on something unsuitable for your business.
Does it provide the opportunity to set specific rules? Each company has its own policies, conditions and pricing models. The rules engine of the underwriting system must provide the option to set specific rules for each of the products and services the company provides. This will enhance the efficiency of the way things work in your company.
Most importantly, does it accommodate changes without hassle? If the life insurance risk analysis and underwriting system only provide the opportunity to the company to accommodate all changes in a lengthy and complicated process, it may make things difficult for the company. A good system will help you avail of the scalability in an easy and effective manner without hassle.
Therefore, if you choose the right underwriting system for your insurance company, you need not require your IT department to spend months installing and implementing it. It will offer all flexibility advantages without any hitches. Enquire about the way the system accommodates changes and modifications to understand this. Make sure that updating the system to match your business requirements is not troublesome.
It is also important to bear in mind what training the employees working in this sector will require for handling the system. The more human intervention in the underwriting process, the more chance of errors and inconsistencies. If you can find a system that can upgrade itself with minimum intervention from the IT department, it will allow you to avail of the full range of benefits of the system.
Andy Flower is a professional underwriter. He provides a brief overview of the way a flexible underwriting system enhances the scope of straight through processing in insurance. If you are looking for such a system to increase STP in insurance, he suggests you visit http://automation.munichre.com/ for further details.
Hello, myself Andy Flower. I am an Author and doing the same for a long time. To know more about me…..please visit my website!!!!