Might 2019 be the yr of an underwriting know-how transformation? We’re not but able to make that prediction, however we do see the makings of a change, as extra insurers spend money on applied sciences that they imagine will ship strong returns to their high and backside strains. Actually, underwriting is the second-largest class inside the rising life insurtech funding sector. It’s second solely to investments in distribution and advertising and marketing, in line with Accenture Analysis. Subsequently, it’s no shock that insurance coverage know-how underpins every of our underwriting predictions for 2019 and past:
A lot of the life underwriting course of will likely be digitalized. One of many final holdouts in delivering a digitally underwritten life insurance coverage coverage — the attending doctor assertion (APS) — will lastly be resolved because of ACORD-standardized transactions. Whereas it gained’t cut back the time it takes for a doctor to assessment and ship the APS, it is going to pace the method of absorbing the data into your underwriting system, serving to you extra rapidly consider dangers and premiums inside a speedy, automated digital underwriting course of. As utility programming interfaces (APIs) proceed to develop into extra available, the necessity for interoperability requirements, similar to ACORD, will develop and assist drive adoption of blockchain to additional pace underwriting and guarantee underwriting integrity.
Underwriting profitability will come beneath even higher scrutiny. We imagine 2019 will likely be a pivotal yr for information analytics and insights. The drive to satisfy or exceed aggressive value targets and repair ranges requires a mastery of knowledge science whether or not in-house or as a service. This contains predictive modeling on the fly, as new insurance coverage merchandise and product variants — particularly simplified-issue merchandise — are launched at ever-shorter intervals. Insurers will even look to operational information for insights that may assist them enhance new enterprise profitability, notably alternatives to speed up and streamline proof assortment.
Underwriters will acquire superpowers from AI. In 2017, we predicted that underwriters wouldn’t get replaced by AI and chatbots, and we keep that place. Actually, we imagine AI and robotic course of automation (RPA) — machines speaking to machines — will give underwriters “superpowers” to robotically course of increased utility volumes, and acquire and parse by means of proof sooner and extra reliably than ever. In accordance with Accenture Analysis, many underwriters spend lower than half of their time processing core data and as an alternative are burdened with mundane duties similar to information entry. AI can free them from these duties to deal with high-value actions that drive sooner, extra correct choices. For instance, Australian insurer TAL created “Wunderwriter” that makes use of AI to make sure high quality assurance within the underwriting course of. The corporate garnered a silver award within the Synthetic Intelligence class on the 2018 Efma-Accenture Innovation in Insurance coverage Awards.FACT: Greater than 90 % of insurers are utilizing, planning to make use of, or contemplating the usage of, machine studying or AI in claims or underwriting processes.[i]
Okay … I do know the title says “three” underwriting predictions, however maybe this subsequent one must be three.5. It’s rising, however on most insurers’ horizons, if not their budgets. As underwriters receive extra data from exterior sources, we see blockchain taking part in a key function, not solely in information safety, but additionally information veracity.
Blockchain will allow a one-stop store for all medical information. Whereas this prediction is one to observe into the not-so-distant future, underwriters at this time are relying much more on publicly obtainable information. Blockchain permits a single supply of fact for digital well being data by centralizing personal data and logging transactions in a safe atmosphere. Because the regulatory atmosphere round blockchain transactions evolves, and because the underwriting course of undergoes additional streamlining and automation, blockchain is prone to develop into a viable know-how to extend transparency and belief.
If even one or two of the predictions holds true for 2019, one factor is definite: the accelerated tempo of underwriting innovation won’t abate in 2019. The query stays, will you be part of it?
Learn the way the Accenture Life Insurance coverage and Annuity Platform helps main insurers speed up new enterprise by means of technological advances in underwriting, analytics, APIs and extra.
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AI gives insurers an enormous step up in underwriting efficiency.
[i] Reimagining insurance coverage processes with Clever Options. P. four