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Underwriting 3.0: Explore the future of underwriting

Underwriting

7 minutes

Effortlessly integrated unstructured data? A real-time view of changing portfolio exposure? Pricing automatically adapting to evolving risks? No, this isn't fantasy, it’s Underwriting 3.0.

While other sectors like finance have modernized their workflows, insurance has often lagged behind. Many of today’s underwriters face similar frustrations to their predecessors decades ago. Burned by unsuccessful transformation projects and locked in by cumbersome legacy tech, envisioning a way forward can be challenging.  

The time has come for change. You need to know where you’re heading before you begin your journey. From platforms to processes, here’s a glimpse into what Underwriting 3.0 looks like and how it drives success for insurers. 

An underwriter’s workday, transformed 

In Underwriting 3.0, a day at work looks and feels very different. Currently (and astonishingly) more than half of a typical day is spent just getting data into the system, with rekeying and ingesting third-party data taking up the bulk of that time.  

The next-generation underwriter opens their laptop and opens their Cloud-based underwriting solution in their browser. No more waiting for clunky software to slowly, painfully load!  

Enabled by AI and machine learning, risk submissions are automatically triaged. Those that sit well outside the insurer’s risk parameters are automatically rejected without the underwriter lifting a finger. Submissions can be priced in a single click.  

There’s also something underwriters won’t be doing; rekeying and other tedious manual processes. Web scraping and APIs contribute to a seamlessly integrated technology ecosystem that slashes redundant effort.  

The effect of this is to allow underwriters to focus on value-added tasks, like risk selection, pricing negotiations and customer/broker relationship management. Not only is this great for the bottom line, it’s also a far more sustainable and enjoyable way to work.  

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Enriched decision-making 

The optimized workflow may be the most immediately noticeable aspect of Underwriting 3.0 for underwriters themselves, but it’s important to note that things aren’t just faster and easier. Underwriting is also better. That’s down to higher-quality data, from more sources, integrated seamlessly at every stage— ultimately leading to more accurate pricing and more profitable outcomes. 

Decided to quote a risk submission? Your pricing system automatically supplies you with the most relevant internal and external data, in a highly readable format.  

The most accurate technical price is calculated automatically. Where less information is available to inform the outcome, a flag is applied letting you know more analysis, input or steering from the underwriter is required before confirmation. Machine Learning pinpoints similar ‘risks like these’ as a useful point of reference for the present decision.  

More informed portfolio decisions 

Portfolio metrics and risks are tracked in real-time with flags for key events. That makes it easier than ever to react quickly to new trends, optimize current performance, and identify profitable growth areas.  

Underwriting 3.0 places the underwriters workflow within the context of more effective strategies, pushing at every angle for the marginal gains that add up to a measurable competitive advantage. It also allows them to contribute in an active and informed way by providing visibility into how the risks they are pricing impact the overarching portfolio. 

Better pricing models 

What’s good for actuaries is good for underwriters, and vice versa. With a data-driven and efficient development, deployment and refinement workflow, actuaries can ensure their underwriting teams have access to the latest and most accurate pricing models. Timelines shrink from years and months to weeks, days, even hours!  

There’s more to the story  

Discover more about the current state of underwriting and the actionable steps to reach Underwriting 3.0 in our report: The Vision and Road to Underwriting 3.0.

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