Leveraging the playing field for small-to-medium insurance companies has become a reality for many such companies who have historically struggled to compete with the larger insurers. Achieving this has been largely due to the use of web-based underwriting software, including applications to help facilitate the quoting/binding process and increase a company’s client base.
The prospect of insurance underwriting is very possibly the least enjoyable part of generating new business, both for the client as well as for the insurance company. Application and data gathering can be annoying for both parties, where the same information that was submitted by an policyholder last year, is re-gathered, rather than updated, in the same manner it was in the 1990s. Even worse is the dreaded letter in the mail that informs the prospective client that something was missed in the underwriting process and that additional time and processing will be required. This is where many insurance companies lose or alienate policyholders, thus making it crucial to “get it right the first time.”
Using an efficient management software package that includes an underwriting module can help to streamline the process. Greater efficiency can be found in online collection with data population resulting in fewer reevaluations and faster turnaround time. This can translate into increased data integrity and a better chance that the company will write more policies.
In addition to making the process easier for policyholders, it can also increase communication and ease of operations for company staff members. Underwriting managers can maintain better oversight of company policy and recommend changes as needed with other departments by logging in and relaying the information.
One of the most advantageous aspects of underwriting software can be its reporting capability. Staff can generate reports that will give potential policyholders full disclosure of policy provisions, as well as give management valuable information such as sales demographics and other analytical data to further grow the business.
While underwriting may not be the most appealing part of the process of acquiring new customers, it is necessary in order to minimize risk to capital assets. Using a good risk management software package that includes an underwriting module may be the key to growing the company’s customer base without sacrificing time, efficiency and customer relationships.