Advanced underwriting workbench – the path ahead

by Jai Kumar

An “underwriting workbench” is a single digital control panel. It’s a central hub for all underwriting tools and processes. It supports the complete underwriting process: from submission to quote and bind. A platform designed with data at its core, using an underwriting workbench helps underwriters with:

• Accurate risk assessment;
• Improved operational efficiency;
• Improved underwriting quality; and
• increased underwriting profits.

It’s logical that insurers with sophisticated data and analytics tools can outperform the market easier by quickly choosing better risks and effectively managing their portfolios.

A contemporary workbench:

• Integrates innovative automation technologies and quality data from sources.
• Gathers, harmonizes, and organizes massive amounts of structured and unstructured data from different sources, including legacy systems.
• Empowers underwriters to analyze risk using internal and third-party data into a single, real-time view. 
• Enables the automatic receiving and processing of risk & asset schedules and bordereau/slips from multiple distribution channels. 
• Provides/prepares underwriter rules and prescriptive intelligence to improve end-to-end policy lifecycle efficiency. 

A best-in-class underwriting workbench?

A best-in-class workbench solution will have multiple vendor-licensed systems, often built internally. The type of business, the architecture and system choices may vary, but an effective underwriting workbench typically includes:

• A customizable workflow to lead underwriters through policy lifecycle processes
• Role-based access permissions
• Integrated systems to allow smooth data flow without double keying
• Automated processing of risk & asset schedules and bordereau/slip inputs with pre-configured risk appetite, criteria, and tolerances
• The flexibility to scale up or down to cope with peaks in demand
• Automated document extraction and document generation across the policy lifecycle processes 
• Dashboards and reporting layers to analyze the portfolio, perform benchmarking, derive prescriptive insights, build personalized UI, etc.

What benefits does using an advanced underwriting workbench bring? 

A best-in-class advanced underwriting workbench pays long-term dividends to re/insurers across multiple areas:

• Better risk selection: Improved data collection to gain new insights and enhance underwriting accuracy and profitability
• Increased volumes: Underwriting automation results in efficiency and effectiveness, meaning that underwriting teams have the capacity to write more risks with the same resources
• Process automation: Eliminating manual duties frees up time for activities that bring value, including expanding the portfolio
• Portfolio improvement: More detailed, easier to interpret information aids in planning the best business mix and fine-tuning pricing, lines, and net positions
• Superior client proposition: Data-centric operations result in detailed exposure data, and enable better risk selection, aggregate analysis, and portfolio analysis

The advantages are obvious. Having a clear strategy and structured plan to implement an effective underwriting workbench could be central to future business success.

To get started re/insurers must:

• Gain a thorough understanding of the current state of their underwriting workflows and policy lifecycle processes.
• Select suppliers/partners to design, develop and deploy the right system for the business

Jai Kumar is VP, digital transformation at Xceedance