As the insurance industry adapts to the ever-changing landscape of our world, consumers are demanding more responsiveness to their needs from companies. This year’s underwriting predictions offer valuable guidance on how carriers can enhance their speed of response.
1. The advancement of cognitive technologies is enabling insurers to target more specific market segments. With the help of AI and data analytics, insurers can now tailor products and services to cater to these growing segments through digital distribution channels like embedded insurance. These channels seamlessly integrate insurance into non-insurance customer journeys, such as offering life insurance during the mortgage application process.
Innovative cognitive insurance platforms are supporting these new products and distribution channels, empowering carriers to seize opportunities in the market. These platforms automate evidence collection and provide real-time recommendations based on updated data analytics, streamlining underwriting decisions. By automating routine tasks, human underwriters can focus on in-depth analysis, leading to more efficient decision-making processes.
2. Customer experience remains a driving force behind underwriting innovation. With the digital competition for new business intensifying, insurers must prioritize meeting consumer expectations promptly. Research shows that consumers across age groups, including older cohorts, are embracing digital experiences. To attract and retain customers, insurers must offer a seamless digital customer experience, with underwriting playing a crucial role in supporting this digital transformation.
As the industry shifts towards protection products, digital technologies are becoming essential for delivering personalized experiences. By leveraging AI, automation, data analytics, and cloud technologies, insurers can drive revenue growth through product and underwriting innovation. Modernizing legacy systems, automating workflows, and tapping into external data sources enable insurers to provide faster, more cost-effective underwriting processes, enhancing both customer and underwriter experiences.
3. Human-machine operating models are poised to address underwriting skills shortages. AI and automation complement underwriting roles by freeing up underwriters’ time for risk assessment and decision-making processes while enhancing operational efficiency. With a focus on digital skills and flexible workforce strategies, insurers can optimize their underwriting functions to meet evolving market demands effectively.
To stay competitive in the digital era, insurers must embrace interoperability and integrated technology stacks to deliver superior customer experiences. By equipping underwriters with the right tools and technologies, insurers can streamline processes, improve efficiency, and meet customers’ evolving needs effectively. This blend of human expertise and technological advancements promises a brighter future for the insurance industry, driving growth and profitability in the years ahead.
