Other parts of this series:
- Multi-channel selling will shape the future of underwriting
- Underwriting needs to better manage new providers and tools
- Underwriting needs to climb the mountain of data in the digital age
- Underwriting management needs to lead the way in the digital ecosystem
- The future of the underwriting process in the digital age
In the first two parts of this series, we looked at how underwriting needs to adapt to changing channels and product offerings. Then, we looked at how underwriting needs to better manage new providers involved in its processes and how underwriting tools need to evolve to support the coordination of different tools, analytics, players and services.
In this blog, we focus on one of the biggest areas of change in underwriting: the explosion of data and analytical tools that we are seeing in the underwriting process. While underwriters will never have perfect or holistic information on a given submission, the digital age brings us a significant surge in the amount and types of data to evaluate.
One of the biggest investment areas in insurance and insurance innovation relates to the development of new data sources and the analysis of their data. In the evolving underwriting ecosystem, carriers need to be ready to consume internal data (both structured and unstructured) and an array of external data from multiple different types and sources. They also need to be able to organize this data for both exploratory purposes for new underwriting insights, as well as for ongoing risk analysis.
The tools that they will use to do this are increasing exponentially. There are new tools for analyzing and comparing data that help evaluate a risk within its peer group. Most recently, we have seen the rise of artificial intelligence/machine learning that could help us discover new insights, in addition to providing assistance on individual risk analysis.
In building the digital ecosystem for the future, the key is to be able to constantly explore new data sources while bringing insights into the underwriting process at the point of need. Only by educating underwriters on these new insights and integrating them into their work processes, can underwriting gain the advantage these new tools and data sets offer.
Join us next time, when we take a closer look at how underwriting operations should transform to thrive in the future.