In our latest content series for P&C insurance providers, we discuss the five main underwriting challenges. This post dives into the second challenge: being hindered by manual activities.
In our last blog, we’ve discussed how cost performance for P&C carriers has not improved in 15 years—and how limited access to better data is one of the barriers to success. Too often, this data is stored in disparate, unconnected systems (sometimes even within the same carrier’s technology infrastructure). Unfortunately, data intake isn’t always consistent, so underwriters are left with a mess that they have to clean up—manually.
This stagnation has made employee productivity an indispensable differentiator among competing providers. Insurers must focus on increasing productivity while decreasing costs. Unfortunately, P&C has traditionally underinvested in the very technology that can achieve this.
Too often, underwriters are forced to work with—or are otherwise overly reliant on—manual processes across multiple, disconnected legacy systems. Having to enter data multiple times in multiple places leads to high error rates, slow quote turnaround times, and a lack of visibility.
According to McKinsey’s observations, “anywhere from 30 to 40 percent of underwriting’s time is spent on administrative tasks, such as rekeying data or manually executing analyses.”
Rather than writing better business faster, underwriters are forced to spend time on administrative, non-value added tasks. According to McKinsey’s observations, “anywhere from 30 to 40 percent of underwriting’s time is spent on administrative tasks, such as rekeying data or manually executing analyses.”
Due to these inconveniences—and fueled by the need for digitization brought on by the pandemic—the tide is turning. According to insurers who responded to a mid-year 2021 Deloitte survey, the top two actions they are prioritizing to support financial and operational stability involve the implementation of new technology—first, to enhance efficiency (70%) and second, to improve customer experience (68%).
Click here to learn how Chubb modernized their tech stack with Unqork
Eliminate Manual Processes
To increase underwriting productivity and manage costs, P&C carriers need to focus on automating activities that don’t add value. McKinsey estimates that up to 40% of P&C carriers’ expenses are locked up in their top 20 to 30 core end-to-end processes, like underwriting—costs that digitization can reduce, and in some cases, eliminate.
Unqork is reimagining the application development process to help P&C firms digitize the rate, quote, bind, and issue processes—enabling faster speed to market. Replacing manual, repetitive tasks with a completely digital underwriting process provides the following benefits:
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Accelerated underwriting: Reduce processing times, cost, and administrative load by fully digitizing the customer lifecycle from quote request to proposal generation
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Reduced data re-entry: Mitigate human error and the need for human-in-the-loop intervention by automating manual processes, incorporating built-in approval controls, and maintaining an audit trail
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Improved customer and agent satisfaction: Enhance client, agent/broker, and underwriter experiences through modern UI and self-service capabilities
To learn more about how Unqork can be leveraged in your insurance organization, schedule a personalized demonstration with one of our in-house experts. Also, sign up for the Unqork newsletter and stay tuned into the latest no-code developments.
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