Underwriting can simultaneously be the best and worst part of a small to mid-size insurance company. It can save the company thousands of dollars by helping to eliminate risks to the company’s capital base, yet if not managed correctly it can cause the loss of potentially good clients.
An insurance management software package that includes an underwriting module can be the key to the efficient conversion of prospects into clients while simultaneously monitoring risks while maintaining compliance with company policy as well as regulatory requirements.
Another advantage that may come with a good insurance management software package for underwriting is improved organization of the entire process. In years past, underwriting could be cumbersome and time-consuming. Many prospective clients were frequently lost in the underwriting process, usually from frustration due to the amount of time the process took, but also because there was no technology in place to catch errors and omissions.
Many of these systems utilize cloud technology in order to keep the system synchronized and up-to-date for all staff members. This can also help to streamline the process as the status of a policy’s underwriting for a potential client can be checked with relative ease.
In choosing a system for underwriting, it is a good idea to look for the following attributes:
-Simplification of applications to the greatest extent possible for better sales opportunities.
-Capability for integration of company underwriting rules into the underwriting software system, thereby increasing consistency as well as compliance with company policy and legislative rules.
-The ability to be used by underwriting support staff for increased efficiency and organization.
-Allow underwriting managers to develop and change policy, and to push those changes to the front office as automated applications.
-Provide the ability to generate reports as needed to help management continually analyze performance and run simulations to improve underwriting policies going forward.
While underwriting software may not seem to be a necessity for small to mid-size insurers, the truth is that to stay competitive in an ever-growing business segment, it can mean the difference between keeping abreast of the competition and moving ahead of them.