What to Look for in Automated Underwriting Software

Automated Underwriting Software

What to Look for in Automated Underwriting Software

Sometimes an underwriting task is unusually complex, requiring special attention to its unique circumstances. Every experienced underwriter has seen a few cases like this.


While unique cases require critical thinking and a hands-on approach, many underwriting tasks are not unique. Some do not require much in the way of creative thinking or adaptability. From an efficiency standpoint, there’s really no reason why employee hours should be spent working on them.


For decades, insurance underwriters have had to manually process simple and complex underwriting tasks alike. However, the rise of automation has changed all that, giving insurers the ability to automate most underwriting tasks and free employee time for more complex and challenging work.


Insurance underwriting software can dramatically increase the efficiency of your department, but only if the software is made well, and with the insurer’s needs in mind.


When shopping for underwriting software, look for these must-have features:


1. An easily updatable rules engine

Automated underwriting works because it checks customer information against risk management guidelines. Because those guidelines are constantly changing, all effective underwriting software systems must have rules engines that can efficiently adjust to new guidelines and philosophies of insurance.


The interface of an automated underwriting software system should provide a way for management to make changes quickly and document the reasoning behind those changes. Otherwise, old rules could end up governing new decisions, inaccurately reflecting risk and costing the insurer time and money to fix.


2. A cloud-based solution

Automated underwriting software needs to be both fully integrated with the sales process, and accessible to all employees who are involved in it. When such a software system is cloud-based, any agent with the appropriate credentials can view a client’s information and make any necessary changes. This dramatically increases the efficiency of the insurance underwriting process.


The cloud-based software system also allows employees to collaborate with one another, regardless of distance. A field agent can enter information that their colleagues in the office can then view almost instantly. Likewise, an agent in the field or an employee working from home can view secure client records and underwriting decisions, thus increasing their productivity.


3. Seamless integration across the business

An insurer that uses automated underwriting software will likely be using a number of other systems as well. In order for the underwriting system to work well, it needs to integrate with all other tools that are involved in the process. This includes cloud-based software-as-a-service (SaaS) tools as well as in-office systems, and covers such program types as:

  • Client relationship management (CRM) software
  • Claims management and adjustment
  • Billing and accounts receivable
  • Policy administration

Integrations that involve customer information must be handled cautiously, as regulations require insurers to securely protect and encrypt this information at all times. When considering automated underwriting software systems, make sure the provider you decide on offers comprehensive security features.


The Takeaway

Automated underwriting could be the key to helping your department reach its highest potential. Take time to research available solutions, such as CHSI Connections.


At CHSI, we offer turnkey solutions to help you manage your full application and policy management process. Take a look at what’s available and drop us a line if you’d like to know more. Your most productive year could be just around the corner.