Insurers who invest in integrating new data and technology companywide while equipping underwriters with exponential skills could experience a virtuous cycle. The result is a more efficient, competitive, and innovative organization. The solution starts with identifying the value at stake for customers and forming cross-functional teams to own well-defined business and customer outcomes.

Streamlined Processes

Streamlining your business processes is one of the most common strategies businesses use to improve overall efficiency. Whether your company ships products, onboards new employees, sells virtual technology, or treats patients, there’s likely an area where you can improve.

Generally, the goal of streamlining is to make a process more efficient by eliminating steps that are unnecessary or complicated. It can be done through a variety of methods, including modernizing existing technologies and approaches to improving workflows.

In many cases, streamlined processes result in better customer service. 

To implement a successful streamlining strategy, you need to understand precisely how the process works from start to finish. It includes documenting each step and identifying any potential risks or issues. It should also be a collaborative undertaking, with everyone involved in the process encouraged to offer frank feedback. In addition, it’s crucial to monitor progress regularly so you can continually improve your streamlined process.

Increased Efficiency

Efficiency is about removing friction from work processes to achieve more extraordinary results with the same resources. Companies across industries strive for that, and insurance is no different.

The insurance industry can improve its efficiencies by reducing redundancies and integrating data-driven tools into every aspect of the business. It will help create an optimal client experience and enable insurers to develop dynamic products that respond quickly to market changes.

For example, some companies are developing artificial intelligence solutions for commercial insurance brokers and carriers that boost sales, reduce human errors, and increase customer satisfaction without adding staff. It will allow companies to deliver a better buying experience while eliminating manual, time-consuming tasks such as gathering and verifying policy information.

Insurance placement solutions can also help companies by providing temporary or contract employees to cover workload spikes, seasonal fluctuations, or urgent projects. Companies can save costs and improve productivity by streamlining hiring processes and finding suitable candidates. They can also connect them with candidates who may not be available through traditional job boards.

Reduced Risk

Insurance placement solutions allow businesses to obtain quotes from multiple carriers and structure their terms to the client’s advantage. It helps reduce the risk of being underwritten to 100% or, in marginal words, an increasing concern among insurers due to low overall capacity and rate shifts from region to region.

While the underlying risks are the same, the ability to quantify and address them is changing as technology advances. It creates a dynamic environment for underwriters who must quickly adapt their skillsets and strategies to remain competitive and avoid adverse selection.

To achieve a successful underwriting transformation, it is crucial to focus on enhancing four critical areas: strategy and governance, data and analytics, technology, and culture and talent. By improving these aspects, the underwriting process can become more efficient and effective, leading to better outcomes for all involved parties. Organizations can create a strong foundation for long-term success and growth by upgrading these areas simultaneously. Without advancing in all areas, insurers could experience a negative spiral that is difficult to reverse. In addition to adverse risk selection, they may lose market share to competitors with broader, deeper datasets and more advanced analytical capabilities. They could also drop off preferred distribution partner lists and need help recruiting and retaining top-skilled talent. Insurance companies progressing in these areas can monetize their data-driven insights and differentiate themselves from the competition.

Increased Revenue

As insurers become more adept at leveraging data, they can also spot clear growth opportunities. For example, using data to identify high renewal increases and cross-sell opportunities allows them to grow their book of business. Similarly, analyzing cycle times and placement ratios can help them improve their overall service by reducing the time needed to enforce policies.

Furthermore, insurers can leverage data to establish adjacent businesses and generate non-risk fee-based revenue. One primary commercial carrier has partnered to provide just-in-time maintenance solutions for HVAC systems in commercial buildings. These solutions are based on monitoring and diagnostics of vibration and sound patterns that can detect problems in the early stages and reduce costly repairs down the road.

Insurance agencies can significantly boost their revenue and foster long-term client relationships by strategically leveraging data. By doing so, they can spend less time on day-to-day operations and more on proactively growing their agency.