The success of any new underwriting workbench project requires complete clarity on the current and future proposed underwriting workflow. Where there is a significant change in the workflow process, this needs to be carefully managed as it increases the risk of the change, impacting both insurance risk and operational cost.In this blog, Dani, Co-Founder of Optalitix, shares his experience with underwriting workbench implementations over many years. He explains why workbenches need to align seamlessly with the underwriting department’s future workflow requirements, and the need to evolve smoothly to the planned underwriting process rather than making largescale changes.
Understand the underwriting process
Documenting and understanding the current underwriting process is vital. A key starting point is whether your underwriting is primarily underwriter led or relies on algorithms. You need to decide whether you will be operating with a large team of underwriters, or a single underwriter, and assess the volume of quotes issued annually. The more underwriters involved, the greater the change needed and the training needs increase exponentially.Additionally, analyse the number of insurance coverages per quote issued, and the range of models needed for the risk assessment. During one implementation, the underwriters discovered that a single quote could require over 6 different underwriting models which would have increased the cost of the implementation (fortunately, Optalitix was able to convert the models in 1 day on our Models platform).These factors will be essential to any changes impacting the underwriting department, and the sustainability and agility of the workbench implementation.
Implementing the change
Finally, the change in process needs to be managed as for any operational change, with training and a clear change process to avoid disruption to existing business. In most cases, the changes will be applied to business already being written. The need for consistency of process and pricing increases the complexity and of these changes.
What is the significance of management information on business performance?
A key benefit of workbenches is their ability to provide real time management information to guide decision-making and assess risk performance. New generation workbenches offer comprehensive metrics such as the number and value of quotes issued, conversion rates, discounts offered, technical versus quoted premiums, geographical distribution of quotes and bound policies and much more.
How we can help
At Optalitix we are fully versed in the underwriting process. We have implemented underwriting workbenches that support simple underwriting processes as well as far more complex processes for multiple quotes and large underwriting departments. We are able to help with explaining the process options available, and our underwriting workbench has been developed to manage any type of process, from real time pricing to complex, underwriter driven quote processes.
Dani’s actuarial experience and passion are key. He is a strong advocate of innovation, optimism and communication, both within the team and for the clients. Dani’s ability and experience with data ensure that we always maximise value and efficiency for every project, enabling us to unlock hidden value for the clients business.
