The role of underwriting continues to evolve with advancements in technology and changing market landscapes. In a recent discussion, host Graham Proud spoke with industry leaders Daniel Brown, VP, Chief Underwriting and Claims Officer at The Baltimore Life Insurance Company, Byrd Preston VP, Chief Underwriting Officer at Bardon Insurance Group, Steven Anderson, Director of Cyber Underwriting at Safety National, and Clearspeed’s Director of Insurance, Allison Albrecht. Each panelist provided profound insights into the current trends, challenges, and future directions of underwriting in the US. Here’s a breakdown of the key takeaways from the conversation:
Shift towards new technologies to streamline underwriting processes
Insurance companies are increasingly finding new ways to utilize technology to streamline the underwriting process. Preston has spent the past several years working on the integration of artificial intelligence within the underwriting processes at Barden Insurance Group, and has seen firsthand how AI has helped reduce time spent looking at applications and quotes. “AI affords us the opportunity … to be able to look intelligently at [a] quote,” he says. While more companies are integrating new technologies, the process isn’t always easy. Steven Anderson highlights how legacy systems can pose a challenge for traditional insurers. Unlike newer insurtechs or startups, which can build systems from the ground up, established insurers face the more challenging task of layering new solutions on top of existing frameworks.
Balancing speed with accuracy in underwriting
With the shift towards more AI-driven technology, Brown notes the importance of maintaining accuracy when speeding up claims processes. “It's great if it's fully automated, but if it's 30% wrong, that's not great for everybody.” Brown notes that different companies have different priorities. One company may prioritize speed while another prioritizes thorough evaluations to avoid adverse selection. Amid the discussion, Clearspeed emerged as a potential solution for all companies regardless of where they fall on the spectrum. Albrecht notes that Clearspeed helps insurers address the desire for speed without compromising accuracy. Clearspeed’s AI-enabled voice analytics technology helps detect risk in voice, letting underwriters fast-track low-risk applications and focus more time on complex, high-risk applications. “Asking the source directly for information, not having to rely on data that's outdated or inaccurate really does allow for a process that you feel you can trust - and that's ultimately what, as insurance carriers and the industry, we're looking to do. We want to provide that same trust back to our consumers who do the same for us."
Enhanced underwriting customer experience
Our discussion brought to light concerns about customer experience in the insurance sector. Panelists emphasized that as the industry evolves, and continues to adopt new technologies, ensuring a positive customer experience is critical. Allison tells us two ways technology enhances the customer experience:
- Speed: By utilizing advanced technologies like those offered by Clearspeed, insurers can expedite the underwriting process. When policies are processed quickly, customers appreciate the efficiency, leading to a more favorable perception of the insurer.
- Unbiased results: By integrating AI-driven analytics, insurers can ensure that decisions are based on objective data rather than individual interpretations. This fosters transparency and fairness, helping customers feel more confident in the process.
Accelerate applications, not risk, during underwriting: Learn more
Improving operational efficiency through partnership and collaboration
New technologies have revolutionized workflows, but they can’t be used alone. Our panelists emphasized that while technology transforms operational processes, its primary role is to augment human capabilities, not replace them. Preston explains that “it's the integration of the vendor along with your internal IT and systems people to make sure that the underwriter's involvement in the process is just at the point of decision.”
Partnerships and collaborations are a critical success factor in adopting new technologies and optimizing underwriting processes. While technology enhances efficiency, human expertise and judgment are irreplaceable in assessing nuanced risks and ensuring fair outcomes for policyholders. The big win is getting the good applicants through the underwriting system faster and allowing the underwriters to spend more time concentrating on the really complex cases. By partnering with external vendors, insurers can access cutting-edge solutions allowing them to enhance process efficiency to repurpose talent.
The future of underwriting is now
Proud summed up the opportunity for underwriting teams to leverage technology, noting that new tech seems to be less of a nice-to-have, and more of an imperative. “Underwriting teams across the U.S. are open-minded. They are embracing change. At the end of the day, they want the best for the business, they want the best for the customer, and they'll do whatever it takes.”
Watch the free webinar: The future is now for underwriting: Technology to illuminate risk and empower decision-making
