Underwriting is an incredibly complex and data-driven area of the insurance industry, calling for the right solution to uncomplicate the data. Experts in underwriting rely on swathes of data, requiring close attention and judgment to perform profitably. Business Intelligence aims to organize and visualize data in underwriting.
Underwriters are expected to review diverse information in order to estimate risk, for example:
- Hand written adjuster notes
- Fraud detection lists
- Bank statements
- Tax returns
- Letters of explanation
- Mixed media, such as video, audio and images
The documents underwriters review are typically PDFs, handwritten notes or pictures provided by a variety of sources. Next generation Business Intelligence software is able to understand and compile this information in more digestible, time-saving ways, while also applying analytics to highlight trends in the data.
Top 3 Benefits of Underwriting Business Intelligence
1. Improve Risk Management
Business Intelligence has the ability to clearly display trends in data. Underwriters have the critical job function of assessing a policyholder’s risk and spend scrupulous hours collecting and reviewing information. Business Intelligence saves underwriters valuable time by discovering trends with existing policyholders, adding efficiency to how underwriters view historical data, and forming better predictions on where the data is headed.
With the rise of sensor technology, insurance carriers today have vast potential to collect sensor data and even avoid claims with better prepared policyholders. From smoke alarms and door sensors to self-service tools and flood detectors, insurers able to leverage these connections have an all-new means of segmenting risk. Policyholders who allow the collection of this data show they are less likely to receive high payouts, opening the door for insurers to offer reduced premiums and discounts to policyholders who can prove their property is better protected, creating new pools of customers to segment risk. This trend is very likely to continue and requires insurers to have the right technology to collect and understand the data in meaningful formats.
2. Market Trends
Underwriting processes can be adjusted based on risk insight into previous claims. One of the most crucial elements behind Business Intelligence is its capabilities to connect departments. When the product management department gets a clear, understandable look into claims data, new policies can be created to address risk. Adjust the underwriting process based on risk insight into previous claims. Business Intelligence not only improves methods of reviewing trends in claims management, but uses this information to project long-term profitability. When insurers make the most of these projections, the effects are far-reaching.
3. Improve the Bottom Line
The greatest benefit of Business Intelligence in underwriting is the potential for an improved bottom line. When risk is better segmented and fraud detection is applied with heightened measures, premiums can be adjusted to competitive, calculated levels. Policyholders are more likely to be retained when they see rewards for safe driving habits or sensor home improvements. Carriers today have a very unique opportunity to cater to new and existing customers, elevating the brand and crafting new policies inspired by next-generation technology.
WaterStreet Company Business Intelligence
The Waterstreet Business Intelligence Platform improves underwriting capabilities through a collection of tools that work together to turn your data into clean, coherent, interactive visuals.
We know the challenges that carriers face in managing business because we come from the insurance industry.
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Reach out to WaterStreet Company today to request a consultation and demo of our solutions.