{"id":64945,"date":"2021-08-06T17:07:17","date_gmt":"2021-08-06T21:07:17","guid":{"rendered":"https:\/\/staging.majesco.com\/?p=64945"},"modified":"2024-04-25T13:35:19","modified_gmt":"2024-04-25T17:35:19","slug":"underwriting-in-a-new-digital-age-for-commercial-insurance","status":"publish","type":"post","link":"https:\/\/staging.majesco.com\/?p=64945","title":{"rendered":"Underwriting in a New Digital Age for Commercial Insurance"},"content":{"rendered":"\n

Underwriters in the commercial market are, in some ways, facing a promising future: Valuate Reports recently estimated that the segment\u2019s compound annual growth rate through 2028 would be 8.5 percent[1]<\/a> \u2013 arguably a healthy clip by any standard.  This is far above the overall average Direct Written Premium (DWP) growth rate of 3-4% over the last decade or more.<\/p>\n\n\n\n

Yet market research indicates that while commercial carriers are adopting digital technologies and next-gen core systems at a rapid pace, age-old manual underwriting processes and lack of relevant data when they need it continue to cause bottlenecks and friction, leaving customers, underwriters and brokers frustrated.<\/p>\n\n\n\n

Businesses insurance premiums are now at $350 billion annually[2]<\/a>, but the workflow generally remains paper-based. Only 25 percent of an underwriter\u2019s day is spent on selling and broker engagement. Underwriters are spending entirely too much time on core processing and other non-sales work.[3]<\/a><\/p>\n\n\n\n

Imagine if underwriters could spend more time with their customers and focus on delivering a better customer experience instead of being bogged down by cumbersome, error-prone manual processes and information gathering? Imagine having intelligent, relevant information pushed to the underwriters\u2019 fingertips at the exact moment they need it, empowering them to make better decisions.<\/p>\n\n\n\n

As an industry, we are on the cusp of taking the necessary actions to make this vision a reality. SMA research[4]<\/a> indicates a gap between what insurers do today and what is needed today and in the future. In fact, 80 percent of insurance executives expect underwriting roles to be significantly different in the next five years than they are today. They know they must evolve underwriting to make their companies competitive amidst the rapid changes in customer needs and expectations, new digital technologies and data sources, and increasing competition from both established players and new entrants.<\/p>\n\n\n\n

This new evolution will be powered by a next-generation underwriting workbench<\/a> that leverages a easily customizable and scalable digital platform, robust data ingestion capabilities, AI and machine learning, and new communication and collaboration tools across\u00a0\u00a0 commercial and specialty lines of business.<\/p>\n\n\n\n

Majesco\u2019s Underwriter360 leverages a next-generation underwriting workbench that uses a digital low-code, no-code platform with those goals in mind.<\/p>\n\n\n\n

Underwriter360 rethinks the traditional underwriting process. The reasons for rethinking have been right in front of us for years: The volatility of the P&C market, customers and carriers have been seeking new digital technologies to speed up the underwriting process, growth in new data sources, every party wanted to make commercial underwriting easier, and the entire processes has to be more cost-effective.<\/p>\n\n\n\n

Majesco Underwriter360 is a cloud-native Software as a Service, automated, insight driven underwriting workbench meant to enhance underwriting efficiency. It was developed to address the pain points that continue to hamper commercial insurance underwriting. In addition to tedious, time-consuming tasks of manually gathering data, the most glaring \u201cPain Points\u2019\u2019 we think are:<\/p>\n\n\n\n