1. Less paperwork.
The insurance underwriting process is notorious for being paper intensive. Having to move data from one form to another is very time consuming and inefficient. By using data science-fueled underwriting stations, underwriters are able to speed up their turn-around time by up to 50 percent.
2. Smarter risk analysis.
Data science uses smart algorithms to intelligently use data from thousands of sources in the underwriting process. Insurance carriers that are using this abundance of data to make underwriting decisions are already seeing initial loss ratio improvements of two percent on average. Another benefit of relying on data to make underwriting decisions is that it minimizes the human bias as its a risk analysis that is truly based on the facts.
3. More efficient.
Underwriters that are relying on data science to make decisions are spending less time on each account. Insurance carriers that are already embracing data science are able to complete the underwriting process 50 percent faster. The increased efficiency allows underwriters to service more accounts. Insurance carriers that are on board with the use of data science in the underwriting process are seeing a 40 percent increase in the number of policy counts.
Risks of Relying on Data Science in the Underwriting Process
The three benefits of data science outlined above are very attractive to any insurance carrier. While data needs to be a part of the underwriting process, it should not be the only factor considered when determining which risks insurance carriers should be taking.
The combination of data and a property inspection will help you to make the most informed underwriting decisions. Our team at Insurance Risk Services has been partnering with property and casualty insurance carriers for more than 35 years to provide accurate underwriting support, and one of the ways that we accomplish this is by conducting thorough property inspections. The property and casualty insurance industry is experiencing declining profitability, which is why you need an experienced and knowledgeable underwriting partner.
Contact us at Insurance Risk Services to learn more about the value of using data and in-person property inspections to make informed underwriting decisions.