IS TRADITIONAL INSURANCE UNDERWRITING VANISHING?
Underwriting is a crucial part of insurance management processes. Instead of getting involved in time-consuming processes, insurance companies prefer finding a long-term or permanent solution.
WHAT IS UNDERWRITING?
We can define insurance underwriting as a process that allows an individual or group to take on financial risk. An underwriter performs risk assessment for the insurers.
IS THE TRADITIONAL UNDERWRITING METHOD STILL IN USE?
Earlier, the insurance companies use to adopt the traditional methods for the process of insurance underwriting. However, the methods were indeed helpful but it was far away from the technology use. Manual underwriting was indeed one of the most challenging jobs. It consumes plenty of time and still does not guarantee its correctness. Output was observed to be very low as compared to the input given.
It generated the need for an automated system that minimizes human effort, reduces the cost of labor, and enhances the user experience. The system assimilates the latest technology. The underwriters who were supposed to carry out the manual underwriting process to facilitate the insurance management tasks have been replaced by the well-integrated software that carries out the whole tasks efficiently.
HOW HAS MODERNIZED UNDERWRITING TECHNIQUES CAPTURED THE MARKET?
It is said that necessity is the mother of invention. The pitfalls of using the traditional methods for underwriting developed the need for reliable and automated software that simplifies the tasks and reduces the possibility of errors. An underwriting software offers multiple benefits including:
- Fully configurable premium rates
- Auto underwriting engine
- Conversion of quotation to policy
- Policy endorsements
- Issuance of the policy document
We cannot say that the systems have entirely replaced the underwriters. But, we can witness the growth of implementation of the latest technology in order to automate the general insurance as well as life insurance processes. 2022 will acknowledge a remarkable growth in the use of the rule-based underwriting system. Amity Software offers a fully-automated system to eliminate the barriers faced by the insurance companies while dealing with the regular processes.