Automation in Insurance Underwriting | Future of Underwriting

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Automated Underwriting

Automation is revolutionizing the insurance industry. Organizations are turning more and more advanced technology and insurtech solutions such as automated underwriting systems to streamline operations. Mendix’s low-code application platform can help insurance outfits create new efficiency and cost reduction opportunities through automated underwriting.

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What is Automated Underwriting?

Underwriting is the process of taking a customer’s relevant personal information and using it to come up with how much insurance to provide and at what rate. These days, insurance customers expect to get the best-possible rate delivered to them within minutes of providing their details, no matter if they are in the market for life, home, motorcycle, car, or some other form of insurance. By generating claim decisions algorithmically, automated underwriting helps the industry keep pace with the consumer’s expectations.

The modern automated insurance underwriting process is powered by Robotic Process Automation (RPA) and Artificial Intelligence (AI). Using a customer’s credit history, insurance telematics, and other personal data like driving records, insurance applications generate automated claim decisions and applicable interest rates.

What Are the Advantages to an Automated Insurance Underwriting System

There are plenty of advantages to using an automated underwriting system when working with claims management software, especially with Mendix’s PaaS solution. When comparing manual underwriting versus automated underwriting, an automated process is not only quicker, but it also increases customer satisfaction, reduces costly errors, and saves money and paper.

Digital insurance companies and insurtech firms can develop several different enterprise applications for both consumer and internal use on Mendix’s platform, with automated underwriting just an example. Insurance innovations are easier to build through Mendix’s model-driven development platform, and new applications roll out fast with Mendix’s App Accelerators built specifically for the insurance industry. Let’s take a look at a few other ways to accelerate insurance product innovation with Mendix.

Built-In Claim Tracking and Reporting

Some enterprise insurance organizations use Mendix to automate alert systems and reports, ensuring customer claims stay on track. Others develop smart apps on the Mendix platform to facilitate customer information and claim data sharing between departments. This streamlined customer service approach helps keep productivity up while also minimizing human error.

Product Insurance Innovation Opportunities

Automating the underwriting process helps insurance organizations gain time and resources to invest in research, product development, and the future of insurance. An increase in automation in insurance underwriting and other areas can lead to expanding existing products into new markets. It can also lead to advances in new product sectors for the insurance organization, such as health insurance innovation.

 

Paperless Application Processes

With greater automation in the application process, a digital insurer will have less paper to deal with after integrating an automated underwriting system. Reducing paper usage through an application development platform or a Site-as-a-Service solution saves digital insurers time, reduces imaging costs, and minimizes the number of manual hand offs. An e-application tied to an automated checking process also means no more half-submitted applications or legibility issues, and that quotes are delivered at digital speeds.