Dani Katz, co-founder and director at Optalitix, discusses the emerging science of underwriting workbenches and introduces a series of articles on the topic
Underwriting workbench tools have emerged as a key methodology to provide underwriters with better risk insight while boosting productivity and enabling better underwriting oversight.
These digital platforms harness cutting-edge technologies such as data analytics and automation to revolutionise the underwriting process within the insurance sector.
Workbenches centralise underwriting tasks, facilitate data-driven decision-making and enhance collaboration among underwriters, improving efficiency and transforming risk management practices.
Ultimately, underwriting workbenches are platforms designed to augment the capabilities of underwriters. At their core lie four essential functions:
- Data intake and management
- Risk assessment and decision-making
- Quote generation and policy issuance
- Additional key features
Paradigm shift
Underwriting workbenches spearhead a paradigm shift in risk management. Their ability to leverage all the data for a risk, automate processes and provide real-time insights empowers organisations to navigate the complexities of the modern insurance landscape more effectively.
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Accenture’s Why AI in insurance claims and underwriting? report, published in August 2022, found that up to 40% of underwriters’ time was spent on non-core and administrative activities – an annual efficiency loss of between $17bn and $32bn.
Similarly, PwC’s Transforming the London Market: Drivers for change in underwriting report, also published in 2022, stated that 53% of insurers want to digitise spreadsheets.
Throughout our underwriting series of articles, Optalitix will explore five pivotal areas:
- Improving risk management
- Helping to reduce loss ratio
- Enhancing efficiency and workflow management
- Providing deeper insight into risk
- Oversight and compliance assurance
Not fit for purpose
Existing workbenches fall short of meeting the evolving demands of the London market insurers, necessitating a holistic approach to equip underwriters with advanced tools, reduce costs, enhance productivity, fortify controls and elevate client and broker services.
Over the coming weeks, Optalitix will embark on an exploratory journey into the realm of underwriting workbenches.
From integrated data management to tailored workflow integration, we will explore and explain why these tools are indispensable for navigating today’s dynamic risk.
- For more information on Optalitix’s underwriting workbench expertise, click here
