The heart of a successful insurance company lies within its underwriting. Without solid underwriting procedures, standards, and protocol, along with an efficient methodology for its implementation, a small insurance company is almost certainly doomed to fall behind or fail.
While this is not news for insurers, the means to achieving excellence in underwriting may not be quite as clear. In today’s competitive insurance market, the solution often lies within the company’s choice to integrate insurance underwriting software into the process.
While there are many reasons to choose underwriting software, there are three major reasons that stand out above the rest.
Keeping Pace With The Bigger Fish
Larger insurance companies are already using insurance underwriting software and reaping the benefits. While their software may be designed by personnel within their own specialty information technology departments, options for comparable software are available to smaller insurers for a fraction of the cost.
Using a platform referred to as Software as a Solution (SAAS) allows small insurance companies to run their underwriting departments without the necessity of software oversight by an IT department because these systems can be designed to maintain themselves seamlessly and continuously for increased opportunities for auto-underwriting.
These software packages are designed with algorithms that assess, update and recycle data from all aspects of the insured property’s lifecycle and funnels that information back into the models that the company uses for analysis and decisions going forward.
Wider Channels For Communication
In today’s fast-paced business environment, the importance of efficient communication cannot be overstated. Implementing an efficient underwriting automation platform can help to streamline the process by keeping the lines of communication between customers, potential customers, agents, and underwriters open to the greatest extent possible.
Many of these systems include the capability for customers to complete a survey regarding their experiences along with suggestions for improvement. The advantage of this is twofold as the customer benefits by feeling that the company values his or her input, and the company benefits by gaining insights of how to improve existing products and services.
All of the above reasons may be assimilated into a fourth major advantage of using insurance underwriting software and that is the advantage of a better bottom line as well as improved performance ratios. It allows insurers to do what they do best without the added expenses or burdens of hiring tech personnel.