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AI Applications • May 18, 2020

Make Smarter Underwriting Decisions with AI

Underwriting is the core process that decides the financial performance of insurance companies. 

Underwriting is a rare skill that needs a lot of business acumen and data skills. A robust process is pivotal for insurers to de-risk any investment and identify catalysts on an excellent value-add opportunity. However, current underwriting processes are not digitally equipped to enable underwriters to evolve and focus on the critical areas required for business growth. They wrestle to extract insights through large volumes of documents residing in different forms such as emails, PDFs, forms, and images and make near perfect risk evaluation decisions.

Large amounts of unstructured data make processing core information cumbersome and consume most of their time, burdening them with mundane tasks such as validating and preparing submission data. Insurers looking to stay relevant in the overall competitive market need to leverage the new-age data assets to improve underwriting performance and make perfect risk evaluation decisions.

Augmenting underwriters’ skills with path-breaking technologies 

Insurers must explore technological options to create a more flexible and efficient workforce and delivery platforms. They should deploy modern technologies like AI and ML across the underwriting value chain. The introduction of these path-breaking technologies will provide room for more innovation, accuracy in risk assessment, and augment the underwriter’s skills to make better and efficient decisions. By employing AI/ML in the process, underwriters can also reduce the manual efforts required to process the documents by almost 85% that leads to improved operational efficiency.

Many companies have started investing their resources to put in place a system that marries the legacy model with the new and modern technology of AI and ML. They are encompassing automation, machine learning, and other cognitive technologies to scale the underwriting process, identify opportunities in real-time, and price risk more accurately. According to a recent study, about 87 percent of insurers are investing more than $5 million in AI each yearWith more than 43% of that amount invested for process optimizations and 58% invested for improving the overall customer experience, insurers are focusing to make smarter underwriting decisions using AI to manage risk better, detect fraud and improve customer experiences.

Such needs have prompted InsureTech giants to leverage solutions that can digitize the underwriting process and allow them to deliver better value to end customers.

Transforming the underwriting journey with Quantiphi’s AI-driven solutions

Analyzing the current needs, Quantiphi has developed its solutions suite to help insurers transform their underwriting cycle. Our AI-driven solutions for low touch underwriting are specifically designed to support the entire underwriting journey and solve the key challenges associated with the current process. The AI and Machine Learning algorithms facilitate underwriters to identify business opportunities, retain existing customers, and maximize underwriting profits while ensuring competitiveness. The solution leverages new-age data assets and improves underwriting performance from augmented intelligence. It allows insurers to uncover incisive insights, capture complex risks in the market, reduce expenses, and increase revenue through better portfolio management.

Quick insights into our AI-driven solutions

  • Computer Vision – Detects valuable items for home insurers in real-time
  • Virtual assistant for underwriters – Interacts with agents and customers through human-like conversations 
  • Straight through processing – Provides a quotation in almost real-time
  • QDox – Automates the end-to-end document processing
  • Recommendation Engine – Suggests relevant policy and coverage changes
  • Underwriting impact dashboard – Enables informed decision-making on contracts

Apart from the above-mentioned benefits, it impacts customer experience positively, reduces inefficiencies in the overall lifecycle, and augments underwriters’ capabilities to make efficient data-driven decisions. This facilitates real-time quotes, faster-service delivery, and customized product offerings.

Interested in knowing more about our AI and ML solutions for low touch underwriting? Explore our website. 

Written by

Quantiphi

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