Revolutionizing Underwriting: Unleashing Efficiency for Better Outcomes

CASE STUDIES

Frank Quinn

10/24/20232 min read

Decades-old underwriting processes have stood the test of time, but many companies remain hesitant to enhance these systems as long as their ratios hover around industry averages. In a recent poll conducted by Accenture, startling revelations emerged—40% of underwriters' valuable time is allocated to non-core activities. It's tempting to resort to quick fixes and minor tweaks rather than embarking on a full-scale process overhaul, but this shortsightedness could prove costly in the long run.

Revolutionizing Underwriting: Unleashing Efficiency for Better Outcomes

The Underwriting Discipline: Beyond Traditional Metrics
Underwriting professionals epitomize meticulousness and dedication. Their expertise spans from precise risk selection to safeguarding profitability and ensuring regulatory compliance. These individuals carry the weight of the company's financial stability on their shoulders. Hence, it's incumbent upon insurers to periodically review processes and provide resources, ensuring that excellence is maintained without compromising the inherent underwriting discipline.

Delving into a recent case showcases the pressing need for, and benefits of, such introspection.

The Operational Quandary
We discovered that a client, during their standard underwriting renewal process for commercial package policies, was investing an astounding average of one hour per renewal. Given the various facets of coverage types, industry classifications, and loss histories, this level of investment for renewals seemed excessive.

Strategic Outcomes
Before partnering with FiveM, our client’s modus operandi was heavily reliant on manual documentation and an overused Excel framework. Redundancies in data entries, underutilized predictive analytics tools, and absence of contemporary workforce analytics created a drawn-out scenario where underwriters experienced both burnout and perceived inequity. Implementing FiveM’s strategic solutions, levering process simplification, lightweight automation, and improved access to enterprise data, resulted in a 25% reduction in average underwriting time for renewals, simultaneously boosting profitability and enhancing staff morale.

Importantly, our mission wasn't to reduce the workforce. Instead, the newfound efficiency empowered underwriters to forge deeper relationship with their channel partners, collaborate with their safety and loss control colleagues to develop new programs, and clear capacity for product innovation.

Holistic Enhancement: An Organizational Imperative
An optimal underwriting process is symbiotic, requiring various functions within the organization to align and evolve in tandem. FiveM's holistic approach involves:

  • Refining and honing processes for maximum efficiency.

  • Automation of repetitive tasks to ensure consistency.

  • Implementing advanced analytics and rigorous data validation protocols.

  • Instituting continual oversight mechanisms to stave off regression.

Concluding Thoughts
In a world where agility and adaptability are premium virtues, it's crucial for insurance industry leaders to evaluate and evolve their underwriting processes. Such evolution not only safeguards the integrity of the discipline but also charts a path for growth and innovation. The horizon beckons with promise; it's time to navigate towards it with renewed purpose and strategy.

Let's chat about what we can do for your underwriting team.