FirstBest Underwriting Survey Identifies Data and Analytics Opportunities and Challenges for Insurers
PR Newswire Association LLC |
FirstBest surveyed a cross section of respondents from both commercial and life/health insurers. Participants included carriers of various sizes representing management, underwriting, business operations, and IT.
The FirstBest survey revealed a notable connection between the utility of data analytics and improved underwriting results — with 56 percent of those surveyed stating that superior data access can directly lead to profitable underwriting. According to respondents, other benefits from data use are better decision making in underwriting (49 percent), and improved underwriting quality (35 percent). Despite the importance of data and analytics noted by survey participants, only 11 percent of carrier respondents indicate satisfaction with current underwriting data and analytics capabilities, and 89 percent indicate dissatisfaction to varying degrees.
"Insurance carriers are increasingly incorporating data assets in their underwriting processes, but they are also often impaired by the task of prioritizing and integrating a sea of data for productive risk assessment and submissions," said
Among the many detailed findings of the 2014
Underwriters are not accessing appropriate data for risk assessment. Carriers were asked: "What percentage of your underwriters has access to data and analytics tools?" and 43 percent of respondents observed that less than half of their underwriters have access to appropriate analytic tools in their current front-office technology setting.
Many carriers are investing heavily in data and analytics tools today, but the investment does not necessarily return the desired data-driven results for prompt and precise underwriting. More than 60 percent of carriers surveyed acknowledged higher spending on data and analytics capabilities in 2014 compared to 2013. But when asked: "If you had a magic wand, how would you use data and analytics to benefit underwriting?" 75 percent of the survey participants indicated data and analytics quality, accessibility, and consolidation is a key need.
"As more and more data and analytical tools become available, insurers must determine not only what data they will use but also how and when they will use it," according to Belizaire. "Our recent survey and market experience validates that too often underwriters need to scour a variety of sources and systems to get the information they need. Particularly for complex commercial risks, underwriters must often manually seek and move information from one system to another in fragmented procedures that can lead to errors, delays, and disruptions in winning and renewing business."
The 2014
Click here to download the FirstBest 2014
About FirstBest
FirstBest® Systems is the leading provider of insurance software solutions and services that help U.S. and global insurance companies improve underwriting profitability, scale their business, and achieve high service levels with agents and brokers. The patented and proven FirstBest Front Office Suite processes more than
To learn more, call 1-781-863-6000 or visit www.FirstBest.com.
Logo - http://photos.prnewswire.com/prnh/20120322/NE75278LOGO
SOURCE
Wordcount: | 720 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News