Skip directly to search

Skip directly to content

 

Insurance Insights: Intelligent Underwriting Workbench

 
 

Insurance Insights | Gareth Miller |
30 March 2021

From our conversations with Insurance leaders, several topics have emerged as key focus areas for 2021 and beyond. In this series, some of our experts will provide insights on how to adapt, accelerate, and innovate in Insurance by tackling the areas of Open Insurance, Data Exploitation, Cloud Migration, Customer Retention & Cross-Selling, Intelligent Underwriting Workbench, and Low Code. In part 5, Gareth Miller explains the benefits of using an underwriting workbench and how to implement it successfully.

When asked to describe what underwriting looks like, those of us who work in the City of London will describe people hurrying around Lloyd’s of London carrying large bound folders of Commercial and Speciality paperwork. However, to borrow from Bob Dylan, the times they are a-changing and digitalisation is the new imperative.

It is easy to point to COVID-19 as the trigger which revealed paper-based underwriting to be untenable in a globally connected world. This would be unfair on those who had already instigated programmes aimed at removing paper from the process before the pandemic hit. The Underwriting Workbench is an increasingly sophisticated manifestation of this change, for which all Chief Underwriters should be lobbying.

WHAT IS AN UNDERWRITING WORKBENCH?

An Underwriting Workbench is a digital control panel and collaboration tool that offers a one-stop shop which streamlines processes, distributes work, accesses digitalised documents or emails, and brings in data streams and analysis. The best of them interact with underlying systems to present an integrated “single pane of glass”, which gives the user an integrated experience across multiple devices. As well as allowing underwriters to better manage their own books of business and workload, the workbench can encourage greater collaboration across teams. The upshot is that a well-implemented workbench can be the catalyst for improved individual and team productivity – manifested in increased profitability.

BENEFITS OF THE WORKBENCH

Integration with existing systems. Built well, the workbench will integrate with legacy systems and offer future optionality. Whereas previously, an underwriter might have needed to switch between screens to retrieve and analyse even the most basic information, a workbench presents that in a user-friendly way. Within a few clicks or taps, an underwriter can bring up relevant information about a case, broker, or client, including active flags on missing information. They can navigate deeper into these views as their needs dictate. And they will be able to start this on an office laptop, continue on their mobile phone or tablet via an app on the train on the way home, and seamlessly pick it up on the laptop again.

Data and analytics. Leveraging internal and external data sources is par for the course for the more tech-enabled insurers. A good workbench will, of course, ingest internal data and present it in a digestible format. However, a great workbench will add external data sources, will incorporate AI-enabled analytics, and may allow tailored interrogation via business intelligence tools. The data used is not just restricted to quotes or existing business and claims experience. It can extend into compliance information such as KYC and, most excitingly, live sources which proactively inform the underwriter of potential risk factors or even upcoming claims events.

Automated workflow. An early workflow application is proactively flagging missing information, but this can be extended to the likes of preventing overshooting underwriting limits, i.e. the maximum liability apportioned to the underwriter or that an insurer is willing to assume from its underwriting activities in total. An underwriter approaching these limits will have options such as rationalising outstanding quotes or passing the business elsewhere in the team. Further possibilities include prompts for proactive contact about upcoming renewals, in turn reducing declines due to missing information or changes in limits or ratings. When connected to auto-renewal and auto-decline tools, which use automation and straight-through-processing after a quote request, the workbench can alert the underwriter to the status of these more straightforward cases.

Monitoring and team management. Offering different features and access rights has huge implications for real-time team workflow management. Head Underwriters can look across their whole team and book of business to assess performance versus appetite, understand how long it takes to quote-and-bind, including factors such as incomplete information, and interrogate information about brokers. By incorporating controls as set out by corporate policies, the workbench creates and stores risk, regulatory, and compliance data. Being digital, it can also provide timestamps for audit purposes; an unobtrusive device that provides further assurance in a regulated environment.

IMPLEMENTING A WORKBENCH

In our experience, prior to implementing a workbench, it is vital to be clear on the reasons for the adoption. A key consideration is whether the workbench is the fulcrum around which change revolves, or the cover that wraps around end users to cushion them against underlying change. Whilst there will be a multitude of priorities, we believe they can be allocated to three primary drivers which, in turn, dictate what and how the workbench delivers:

  • More profitable underwriting
  • Increasing efficiency
  • Increasing distribution

These are not mutually exclusive, of course, but Head Underwriters and CIOs will need to work out the optimal combination of benefits, such as deploying enhanced analytics, leveraging scarce specialist skills, and improving service to brokers and customers.

Once the business case is clear, the design and implementation steps come to the fore:

  1. Identify and engage with the users early in the design phase and map out the relevant journeys. Consider how the workbench can change these interactions and processes – do not assume that they need to follow the same flow as today – and which training or socialisation may be needed.
  2. Use data analysis and user surveys to identify data or information available for the workbench to ingest and present. Such data may be unique to the insurer. This is an opportunity to create new information flows and to codify informal arrangements, for example, manual spreadsheets that have crept in as a result of data process shortcomings or user frustrations.
  3. Harness the power of the data revolution. Whilst insurers can call on external data sources today, the degree to which this is done effectively and dynamically varies. A workbench can be built to call on real-time external data directly from multiple sources and allow the manipulation of that data within the tool.
  4. Establish how the workbench can integrate with processes and workflows – existing or future ones. To reach its full potential, the integration must be seamless. Adding layers or awkward detours to user journeys and workflows is unlikely to improve efficiency or help specialists to focus on where they are needed most.
  5. Identify the architecture that will support the workbench. This needs to be done in step with any user journeys, workflows, and processes which the workbench will replace, augment, or interact with. As well as considering cloud versus on-premises, insurers need to understand the state of their legacy architecture across which the workbench sits – as well as any plans for upgrades. APIs offer a solution, but in some situations, one cannot assume that legacy components will be API-ready. To harness external data, the same question needs to be asked of external sources, of course.

Underwriting Workbenches are a well-established construct, and the current convergence of technology and business drivers opens up possibilities to evolve your capabilities exponentially. Insurers need to be careful, though, not to rush in and be tempted by all the “bells and whistles”. In order to capitalise on these opportunities, underwriters and CIOs need to stay focused on their specific key drivers, seamless integration, and an engaging user experience.

In the future, we can expect Underwriting Workbenches to become increasingly central to the workflow within insurance companies. As the sophistication and reach of automation and digitalisation increase, the workbench will provide a nexus for working on, monitoring, and controlling a greater proportion of an insurers’ book. With evolving technology, activities that sit outside the workbench today, such as pricing engines, could be performed within its parameters. Well-designed workbenches will allow underwriters to capitalise more efficiently and effectively on the potential offered by improved data analytics, access IoT technology, and plug into initiatives such as Lloyd’s of London’s Blueprint Two (a technology-enabled insurance marketplace). Integration with these and other dynamic data sources, both internal and external, will allow not only better-priced risk but also more proactive risk management.

 

Gareth Miller

Principal Consultant, Financial Services

Gareth has 20 years’ experience in a range of Financial Services roles including as an industry consultant and a stint at the regulator. During that time, he realised that he enjoys helping solve complex problems through technology, rather than simply highlighting them. Since joining Endava, he is well-positioned to help clients manage competing priorities and achieve their objectives. To take his mind off all this complexity he enjoys exploring the countryside with his family, or solo on his mountain bike. He also home-brews a decent beer.

 

Related Articles

  • 06 April 2021

    Insurance Insights: Low Code

  • 30 March 2021

    Insurance Insights: Intelligent Underwriting Workbench

  • 16 March 2021

    Insurance Insights: Customer Retention & Cross-Selling

  • 09 March 2021

    Insurance Insights: Cloud Migration

  • 23 February 2021

    Insurance Insights: Data Exploitation

 

From This Author

  • 16 February 2021

    Insurance Insights: Open Insurance

  • 02 June 2020

    Creating a Resilient Advantage

Most Popular Articles

An Anatomy of the Data-Driven Retail Supply Chain
 

Transportation & Logistics Insights | Jeremy Eaton | 25 May 2023

An Anatomy of the Data-Driven Retail Supply Chain

BNPL Regulation to Protect Consumers and Control Third-party Lenders
 

Banking | Annmarie Mahabir | 23 May 2023

BNPL Regulation to Protect Consumers and Control Third-party Lenders

How Offer and Order Management Systems Are Expanding The Aviation Business Model
 

Mobility | Joachim Zintl | 17 May 2023

How Offer and Order Management Systems Are Expanding The Aviation Business Model

Salut! I’m Adriana Calomfirescu
 

Meet the SME | Adriana Calomfirescu | 16 May 2023

Salut! I’m Adriana Calomfirescu

Hi, I’m David Boast
 

Meet the SME | David Boast | 15 May 2023

Hi, I’m David Boast

The Business Impact of Fan Engagement: How to Leverage Technology to Improve Loyalty
 

Innovation | Robert Milner | 12 May 2023

The Business Impact of Fan Engagement: How to Leverage Technology to Improve Loyalty

Staying Relevant – Why Merchants should Embrace Alternative Payment Methods
 

Payments | Steven Purton | 09 May 2023

Staying Relevant – Why Merchants should Embrace Alternative Payment Methods

How IoT is Changing Insurance
 

Insurance Insights | Vince Francis | 02 May 2023

How IoT is Changing Insurance

A Veteran Game Developer's Perspective on Tool Development
 

Automation | Thomas Bedenk | 26 April 2023

A Veteran Game Developer's Perspective on Tool Development

 

Archive

  • 25 May 2023

    An Anatomy of the Data-Driven Retail Supply Chain

  • 23 May 2023

    BNPL Regulation to Protect Consumers and Control Third-party Lenders

  • 17 May 2023

    How Offer and Order Management Systems Are Expanding The Aviation Business Model

  • 16 May 2023

    Salut! I’m Adriana Calomfirescu

  • 15 May 2023

    Hi, I’m David Boast

  • 12 May 2023

    The Business Impact of Fan Engagement: How to Leverage Technology to Improve Loyalty

  • 09 May 2023

    Staying Relevant – Why Merchants should Embrace Alternative Payment Methods

  • 02 May 2023

    How IoT is Changing Insurance

  • 26 April 2023

    A Veteran Game Developer's Perspective on Tool Development

  • 24 April 2023

    How Digital Ecosystems Enhance the Healthcare Experience

  • 21 April 2023

    Green machines: how tech can help companies hit Net Zero targets

  • 20 April 2023

    The Role of People and Technology in the Future of Underwriting

  • 19 April 2023

    Media 2030: Why Advertisers and Publishers Are Racing To Find New Strategies

  • 18 April 2023

    Alright, I’m Adrian Sutherland

  • 14 April 2023

    How Synthetic Data Could Solve The Patient Privacy Dilemma

  • 11 April 2023

    Payments makes the world go round! How banks can get creative

  • 06 April 2023

    Higher Fidelity: Good Outcomes and Harnessing the Challenge of FCA's Consumer Duty

  • 05 April 2023

    AI in Pharma: How Machine Learning is Revolutionising Every Step in Drug Development

  • 04 April 2023

    Hello! I’m Leane Collins

  • 31 March 2023

    The Dos and Don’ts of Successful Carve-Outs in Private Equity

  • 30 March 2023

    Cage of Reason: FCA's new Consumer Duty heralds the rise of the 'Reasonable Insurer'

  • 28 March 2023

    A legal view on the ownership and future of AI-generated works

  • 24 March 2023

    Championing Women in Tech

  • 23 March 2023

    5 Ways Capital Markets Firms Can Ensure Resilient Operations to Improve Credibility and Efficiency

  • 15 March 2023

    Buenas! I’m Leticia Chajchir

  • 14 March 2023

    4 Ways to Improve Customers’ E-Commerce Search Experience

  • 28 February 2023

    4 Healthcare Innovations That Can Benefit People and Profit

  • 21 February 2023

    Hey, I’m Lewis Brown

  • 17 February 2023

    Top Considerations for Financial Services Providers Entering the Cross-Border Payments Space

  • 13 February 2023

    Better Together: Harnessing the Power of Digital Ecosystems

  • 09 February 2023

    What to Include in a Customer Re-Engagement Content Library

  • 07 February 2023

    Supercharging Wealth Management with Hyper-personalisation

  • 02 February 2023

    How Innovating the Insurance Customer Journey Creates a Competitive Advantage

  • 30 January 2023

    G’day, I’m David Marsh

  • 26 January 2023

    Empowering Underwriting and Unlocking Revenue with Legacy Insurance Data Sets

  • 24 January 2023

    Four Stakeholders Who Win the Most When Healthcare Innovates

  • 23 January 2023

    Journey to the Centre of the Cloud with AWS – Part 3

  • 20 January 2023

    Journey to the Centre of the Cloud with AWS – Part 2

  • 18 January 2023

    Journey to the Centre of the Cloud with AWS – Part 1

  • 17 January 2023

    The 4 Most Common Mistakes in Retail Site Design

  • 13 January 2023

    Boost and bolster your innovation. Three tips to help get it to the next level.

  • 10 January 2023

    5 Questions in Smart Energy That Will Define the Net Zero Transition

We are listening

How would you rate your experience with Endava so far?

We would appreciate talking to you about your feedback. Could you share with us your contact details?