Leveraging Insurtech for Future-Proof Underwriting

BY: Patty Nicholson
JANUARY 23, 2023

In our fast-paced world, there’s a need for automated and efficient ways to do business. Underwriting is no exception. Insurtech advancements allow insurers to transform underwriting workflows through automation and machine learning.

The world of underwriting is changing rapidly. Insurtech is adopting new technologies and automation tools to save time and money. If your firm needs to modernize its infrastructure, here are a few things to consider.

Key Takeaways:

  • Insurtech solutions optimize insurance underwriting
  • Artificial Intelligence, Machine Learning, and Automation are reducing the repetitive nature of underwriting
  • Insurers can predict risk faster with automated underwriting
  • AI and ML help with cross-selling and customer retention
  • RPA automates repetitive tasks
  • Advanced analytics can help insurers maximize business outcomes

The Underwriting Process is Ripe for Automation

The underwriting process has been ripe for automation for a long time. The repetitive nature of the work and the inherent similarity between applications make it an ideal candidate for automation.

In addition, many underwriters are overloaded with work, creating a need to review thousands of applications in a given day. This workload can lead to errors that result in delayed decisions or denied policies, all of which cost carriers money and clients peace of mind.

Technology Solutions Alleviate Underwriting Problems

Technology is progressing in significant ways to alleviate these problems.

  • Artificial intelligence (AI) can automate repetitive tasks. From taking over the initial underwriting process all the way through to handling customer service inquiries or managing a portfolio of loans.
  • Machine learning can make decisions about handling new situations previously handled manually by humans. For example, suppose there’s increased fraud activity related to a specific type of loan scenario. In that case, machine learning can learn from past models and adjust its approach accordingly.

AI, machine learning, and automation can help speed up the underwriting process and reduce costs by increasing accuracy. Underwriting workflows are incredibly complex and require a lot of manual review of documents.

Technology can intelligently automate these processes while at the same time reducing human error in decision-making. For example, an insurance company can use technology that automatically reads each document submitted by a customer to determine whether it is sufficient. AI will improve accuracy while reducing human error to improve customer satisfaction because they don’t need to dig through documents looking for mistakes anymore.

Increase Accuracy and Speed Through Automated Underwriting

Automated underwriting is a process in which an insurance company uses information about a potential customer to help decide if that person can receive coverage for certain products (like auto insurance). This technology augments human decision-making.

In the insurance industry, there are two main types of automated underwriting:

Automated decision-making uses computer algorithms that analyze a customer’s application data and compare it to information about other people approved for coverage. The algorithms then estimate what coverage is available to provide instant quotes.

Probabilistic modeling starts with a pool of applicants approved for coverage. Then, it analyzes their claims history to predict how likely each applicant will file another claim after buying a policy.

Automated underwriting is a powerful tool that allows insurance companies to make faster, more accurate decisions for applicants. It will enable them to take a more holistic view of an applicant’s risk profile rather than relying on information provided in applications.

Predict Renewals and Optimize Annual Review Processes

With the right technology, you can automate much of the renewal process. Machine learning (ML) algorithms can predict a customer’s likelihood of renewing, allowing you to reach customers who are likely to cancel their policy. Combined with predictive modeling and AI-driven underwriting processes, this automation enables you to achieve higher renewal rates and lower costs for both carriers and consumers.

Using AI for your annual review process can also increase customer retention by helping individuals manage their healthcare expenses more effectively. You could also provide new insurance products based on individual needs or risk profiles instead of simply offering plans that have been pre-approved by carriers or regulators.

Reduce Repetitive Tasks with Robotic Process Automation

Robotic process automation (RPA) works with existing systems to automate routine tasks. It uses artificial intelligence (AI) and machine learning to perform tasks without human intervention.

In insurance, RPA is an alternative to manual underwriting. Instead of having a human employee perform all the necessary steps to complete an underwriting transaction, you can use RPA.

There are several benefits when compared with traditional manual methods:

  • Improved accuracy – With RPA, there’s virtually no chance that an error will be made during the underwriting process because everything is automated. There are no human errors or typos. You only need to worry about whether your policy meets the requirements set forth by your insurance provider.
  • Faster processing time – Since everything is automated, there’s no longer any need for a human employee to manually input information into an application form or manually check for specific criteria such as risk limits and personal details.

RPA can help insurance companies save money and make better decisions by automating repetitive tasks like data entry and analysis. According to a recent Accenture report, it can accelerate processing speed and accuracy by up to 80%.

Maximize Outcomes with Advanced Analytics

In the past, insurers could rely on their existing data for underwriting decisions. However, with the new regulatory environment and increasing competition, insurers need more advanced analytics to make informed underwriting decisions.

Many insurance companies are now using advanced analytics for underwriting. This process enables you to:

  • Process applications faster by eliminating manual steps
  • Calculate premiums more accurately through improved risk assessment
  • Identify opportunities for cross-selling products or services based on customers’ needs and preferences
  • Assess risk and make better decisions about pricing and coverage

With advanced analytics, you can better understand the factors influencing your underwriting decisions. You can identify patterns in your data, determine the right customers for your products and predict the future.


Embracing automation is not just one of the best ways to stay current with evolving technology; it’s also an opportunity to improve your own business. With the right tech environment and strategy, your company can embrace new technologies without worrying about getting left behind when things change.

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Written by Patty Nicholson

""With an exceptional ability to execute and implement enterprise-wide, highly complex strategic initiatives building trust with teams and cross-functional partners, and over 20 years of demonstrated leadership skills, Patty Nicholson oversees all operations while maintaining a commitment to 5-star customer success. Most of her career has been working with insurance organizations on ways to automate manual processes to new digital platforms.""

JANUARY 23, 2023
RD Global Empowers Insurance Companies to optimize total digital experience, unify data, and harmonize processes by developing high impact technology solutions infused with a 5-star customer experience.