A path to optimising the underwriting process
The underwriting process is under intense pressure from both internal legacy equipment and increasing external disrupters, creating the perfect storm for insurers who delay modernisation.
Aging systems in a volatile world
For insurers to remain profitable in the future they need to adapt more agile technologies that can integrate and parse good data to create better customer journeys, superior product offerings, and facilitate a firm grasp of analytics that supports and help define business goals. Furthermore, insurers need to go all-in with STP (straight-through processing) technologies to remain competitive and cost-efficient.
As it stands today, aging custom-build systems and complex silo-solutions leave insurers unable to compete effectively with more agile competitors who have embraced digitalisation and are now getting more comfortable with data parsing and modelling to help price products, predict client risk levels, and decide on what products to discontinue or build tomorrow.
Increasing natural disasters drive adoption of better technologies
Compounding the issue further, natural disasters totalling over $1 billion have hit record annual numbers as of 2022, and will continue to increase across the world in the near to long term future.
Going forward, how can insurers remain competitive and break new ground in the face of such disruptions?
According to this article in McKinsey, the distinction between market leaders and everyone else is:
“Best-in-class performers are putting distance between themselves and competitors by building advanced data and analytics underwriting capabilities.”
Reactive underwriting or STP?
Assessing the level of risk of a potential client has traditionally required an underwriter’s considerable involvement, but, according to the McKinsey article linked above, up to 95% of policies may undergo straight-through processing with no involvement from an underwriter.
To achieve this, insurers must embrace external data streams and learn to use data for effective modelling, as well as develop cross-disciplined teams with the know how to handle that data and apply it to the business effectively.
And, to realise this data-driven and predictive future requires a state-of-the-art, standard SaaS platform built to support these technologies.
Keylane’s Axon platform
With straight-through processing, Axon grants insurers the ability to handle quotes, policy applications, alternations and claims quickly and efficiently, enabling complex business processes to be handled within minutes, empowering insurance businesses with the agility to be truly digital providers. Furthermore, by making use of smart data modelling tools on the Axon Data Mart, it is possible to feed the Axon’s STP-rules engine, making the right decisions based on a continue data stream.
And, by using Axon’s flexible and smart workflows, insurers can create straight-through processes from request to policy administration, with a full audit trail for historic, current and future policy versions.
Test drive Axon today
Experience Axon for yourself today. Simply fill out the following contact form and request an extended demo and we will happily show you how Axon works to take away many of the problems facing the industry today.