As we lurch from one crisis to the next, insurance is never too far away from the front lines. The reinsurance market is hardening so it’s vital that reinsurance underwriters integrate AI, data and analytics into their tech stack to maximise growth. There are some huge benefits. Underwriters will be able to generate a pricing advantage as well as automate and otherwise streamline processes. Teams will also be able to make better use of underwriting talent – especially important given that the insurance industry was worried about talent shortages long before the so-called “great resignation”.
The state of play
Strides have already been made to improve catastrophe modelling and computational capability. However, inefficiencies still remain in relation to daily underwriting operations – underwriters still spend far too long gathering data which leads to challenges in using it effectively.
So what do you need to do?
For better pricing decisions, reinsurers have to focus on data management as well as governance processes. Data quality and data integrity are key, not to mention the means by which you integrate that data from all sources. That way companies will be able to speed up risk assessment and improve pricing operations.
After the foundations are set, reinsurers can give underwriters more time but finding a way to input the data is a key step. AI and ML are your answers to this particular conundrum. They can do everything from gather to analyse to input the data into your system at higher speeds and with more accuracy. Here’s where the value to your underwriters comes in; they focus on the high-IQ stuff, while the robots handle the boring jobs.
Great, so what next?
Don’t think about the tech first. First focus on goals you want to achieve and then layer the technology on top. You can then harness the juicy data and put it to good use. Lastly, partnerships are your friends – literally. There are solutions out there that you can integrate much quicker than doing it in-house.