Commercial underwriters face significant challenges in today’s fast-paced environment. The demand for swift decision-making, precise risk assessments, and profitable portfolio management creates immense pressure. There’s a need to attract new business, retain existing clients, and establish an enterprise underwriting strategy that fosters ongoing growth.
Navigating the intricacies of commercial and specialty risks adds another layer of complexity. Analysing risks, setting accurate pricing, adhering to underwriting guidelines, monitoring exposure, and expertly communicating with brokers and clients, all while striving to turn a profit requires time and meticulous attention. It’s a delicate balance of efficiency and profitability amid the constant swivel of the chair. Keep reading to discover what an underwriting workbench is, how it can help underwriters and our top 5 solutions!
What is an Underwriting Workbench?
An underwriting workbench serves as a centralised platform where underwriters can conveniently access all the necessary tools, data, and insights throughout the entire process from submission to binding. These workbenches typically enable underwriters to handle new business, renewals, and endorsements. Equipped with diverse automation features, underwriting workbenches facilitate improved risk selection, pricing, and near real-time quoting and underwriting.
What Are The 3 Types of Underwriting?
Underwriting encompasses diverse types, with most underwriters specialising in specific areas. The following are common domains where underwriters focus on evaluating financial risks:
Underwriting For Loans
Underwriting is a standard procedure for every loan, typically automated. It involves assessing an applicant’s credit history, financial records, collateral value, and other factors based on the loan’s size and purpose. The most prevalent type of loan requiring underwriting is mortgages, encountered by the majority of individuals.
In insurance underwriting, the attention is directed towards the prospective policyholder, individuals seeking health or life insurance. Historically, health insurance involved medical underwriting, where the determination of charges and coverage approval hinged on the applicant’s health, often influenced by pre-existing conditions.
Investors and investment banks employ securities underwriting to evaluate the potential profitability of investments, specifically securities like individual stocks. In this process, an underwriter identifies the lucrative securities of a company seeking an initial public offering (IPO).
Subsequently, the underwriter or an investment bank sells these securities in the market to generate a profit. Both the potential investor and underwriter gain from this underwriting procedure, as it evaluates whether the IPO company can successfully raise the necessary capital, ensuring the underwriter earns a profit for their services.
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Benefits of Underwriting Workbenches
Underwriters are more inclined to endorse the adoption of underwriting workbenches once they grasp the numerous advantages they offer. These benefits include:
Enhanced Audit and Compliance Oversight
Underwriting workbenches provide advanced tools for conducting audits and ensuring compliance. This feature enables underwriters to maintain a high level of accuracy and adhere to regulatory requirements more effectively.
Streamlined Data Management
An underwriting workbench offers a unified platform for managing various aspects of the underwriting process, from receiving new business submissions to handling renewals and processing endorsement data. By consolidating these functions into a single platform, underwriters can improve efficiency and reduce manual effort.
Centralised Data Integration
Underwriting workbenches serve as a central entry point for cleansing and enriching both structured and unstructured data. Underwriters can easily access and integrate data from submissions, third-party sources, and existing data silos. This becomes particularly valuable as underwriters gain access to a growing volume of data related to increasingly complex risks.
Top 5 Underwriting Workbenches for Insurers
Underwriting workbench’s offer insurance underwriters tremendous benefits, which include streamlining communications with brokers and clients and ensuring data analytics are centralised. No platform shares the exact same features, making it difficult decide which one is best for your company, however, below we have listed what we believe are the top 5 available on the market.
The model hosting platform provided by the company enables clients to swiftly host pricing and integrate AI models into core systems, with easy implementation of version updates and monitoring. Clients can enhance their pricing systems by incorporating the underwriting workbench, featuring the latest actuarial pricing models, tools, and data to future-proof their insurance business. The company’s exceptionally fast systems are purpose-built for scalability, supporting rapid growth and efficient underwriting processes.
2. Advantage Go
AdvantageGo stands as the progressive product for commercial insurance and reinsurance developed by NIIT Technologies. It combines the capabilities of established, feature-rich core solutions with the dynamism and ethos of being a leader in InsurTech. AdvantageGo empowers insurers and reinsurers globally to seamlessly blend traditional practices with digital innovation. This facilitates quick adaptation, drives change, and ensures success through agile software and Microservices.
3. Swissre- Magnum
Magnum was created by Swissre and heavily focuses on a life insurance underwriting solution. It is a user-friendly, cloud-based solution for product development, customer experience, and cost reduction. Clients can collaborate with the experts to enhance conversion rates and access advanced analytics. Tailored to individual requirements, the platform enhances point-of-sale underwriting automation through customisable rules. Users can make informed decisions and propel their digital journey confidently.
4. Kalepa- Copilot
Established in 2018, Copilot is dedicated to assisting Commercial P&C carriers in confident binding. Kalepa offers insurers an underwriting workbench powered by AI. The AI-driven copilot software allows underwriters to concentrate on ROI opportunities and swiftly assess and select risk optimally. It serves as an excellent investment for insurers seeking to enhance risk selection and strengthen broker relationships.
5. Send Technology
Workbench serves as a comprehensive commercial insurance platform that streamlines and aids the entire underwriting process, spanning from the initial inquiry to binding.
The platform establishes a unified customer view of data, empowering users to make informed decisions precisely when needed. Intelligent assist features drive tasks and workflow, meticulously designed to optimise, automate, and enhance the overall process. Workbench provides both operational and strategic insights. This capability assists in making well-informed decisions and conducting commercial operations with confidence in the commercial insurance domain.