Note: This blog post first appeared at StrategyMeetsAction.com. Click here to read the original.
The benefits of next generation underwriting for complex risks are quantifiable and real. So – when, where, and how to start?
Now. The sooner, the better.
It all starts with understanding the possible. You need to know what is realistically possible with the offerings that are available today. It is equally important to figure out what will be possible in the not too distant future.
Once you’ve got a grip on the possibilities, it’s time to set priorities. Describe the capabilities that go on the priority list using business terminology. This makes it much easier to have meaningful conversations between the business and IT interests. It is very important to look at how your plans for underwriting will align and work in concert with your policy administration system. Figure out what the best path for your organization is, and then just make it happen.
The most effective path for making progress depends on the characteristics and culture of the company. For some insurers, shifting focus to the possibilities for underwriting gets things moving. Other organizations might need some help or just a kick-start. You can move the ball forward significantly by bringing in advisors that can describe what the options are and then put the value in context for your company. The important thing is to make progress one way or another. Time is of the essence.
The pace and breadth of change inside and outside our industry make the Partners at SMA feel very strongly about the significance of our signature Top 10 Imperatives. It is the urgency that makes it so important to concentrate on the underwriting imperative – Interconnect Intelligence for Underwriting.
When we started to build this out, we wanted to describe modern underwriting capabilities in the most basic terms. Simply put, the goal of underwriting is to maximize efficiency and effectiveness. This is how the 5 I’s were born.
SMA’s concept of modern underwriting capabilities can best be described by using the 5 I’s: Intuitive, Intelligent, Interconnected, Informative, and Insightful. The next generation insurers are embracing solutions that embody these characteristics, and they are reaping the benefits.