In an insurance core processing enhancement area that is underrated, the automated life underwriting process shares a similar story. The life insurance industry has made great strides to automate the life underwriting process. But hundreds of life insurance companies still haven’t seen its potential, allowing the industry to pass them by.
Using automated underwriting software can lead to better client service, enhanced agency communications, better tracking, more uniform underwriting decisions, faster on-boarding, and higher mortality rates, all of which could lead to higher profits. The following seven benefits might convince any business that is still skeptical of the business value of technology.
Listed below are the benefits of underwriting software for insurance companies:-
Better Tracking and Improved Workflow
The use of workbench tools to implement an automated underwriting system keeps applications moving along. A case’s pipeline is so well organized that after it has been entered, automated alerts, queuing logic, and tracking dashboards for Service Level Agreements (SLAs) make it unlikely to cease without human intervention. Simplifying the passing of tasks between stakeholders. Additionally, this increases internal productivity while improving customer service.
More Effective Use of Underwriting Resources
Life insurers can circumvent human underwriters in many simplified issue situations through their automated underwriting programs. This allows the insurer to incorporate their underwriters for higher value and more complex cases while minimizing their time spent on less productive activities. A company can assign intelligent rules to its automated underwriting system to determine which types of cases will be routed to which level of underwriters, even in the case where it is primarily used as a routing tool, providing more effective resource allocation.
Enhanced Visibility and Service
There is usually a delay between phone calls while the application is located in order to check on the case status. Through web portal or agency management software, insurers can make real-time case status data readily available via visible tracking and dashboards. As a result, home office calls are reduced and both customers and agents enjoy a smoother transaction.
Increased Consistent Decisions
An insurer’s underwriting philosophy is reinforced by using automatic underwriting rules in the underwriting process. Not only does the automated system provide guidelines for what is expected, but it also enforces those guidelines by sending messages to the insurer when exceptions are made and taking escalation action. Systematic tracking of exceptions can be undertaken by an automated life underwriting system so that particular rules can be honed later. In addition to simplifying the agent’s task, consistency will make underwriting more consistent among agents.
Refined Product Development
Underwriting departments that have fully automated their decision-making processes are free to create new products for automated decisions. It is possible to enter new markets with product lines by using Product Development’s full capabilities.
Better mortality is a data stream for actuarial models, not a single improvement.
Maintaining competitiveness requires organizations to take on modernization. The top priority should be modernizing underwriting for life insurers that are not yet automating it. The next time your organization is considering a thorough administration modernization program, keep an eye out for automated underwriting capabilities. Thus, we know now how beneficial is insurance underwriting software is!