AI led underwriting – Blueprint for carriers
The life insurance industry is undergoing rapid digital transformation due to evolving customer preferences, rapid expansion of data and development of advanced AI/NLP solutions.
Life Underwriting as a core process within the value chain has been at the heart of these developments. Carriers continue to invest by adopting modern AI based solutions to generate capacity in their underwriting functions while simultaneously delivering a superior customer experience.
The current underwriting landscape is ripe for digitization
- There has been a 29% increase in customer preference for buying online since 2016
- Accelerated underwriting resulted in 14% median increased in sales volumes for carriers over a two-year period
- Underwriters spend 40-50% of their time on non-value generating / admin activities
- almost 80% of the data shared is unstructured
The challenge with accelerated underwriting is that it has been focused on simplified term-insurance like products with stringent criteria on the profile of applicants. As adoption increases, carriers are now looking to apply these concepts to transform their fully underwritten journeys and create a differentiated customer experience while reducing costs.
At EXL, we have been investing in designing a blueprint of this futuristic model of data driven underwriting. Read about our position on creating a streamlined underwriting journey powered by AI
EXL’s Blueprint for a data-driven underwriting journey
EXL has staked out components for success this four-part series to simplify the complex and jumpstart your journey toward innovation. Over the next couple months, we’ll be releasing new content that will help your business attain a frontrunner advantage. Topics include:
AI/NLP engine to digitize medical records – Modern AI solutions based on advanced NLP algorithms provide structured, normalized and accurate data for decision making.
Conversational AI led superior customer journey – It is prudent for carriers to offer more personalized, intuitive interfaces for customers to interact and provide information.
Alternate sources of data – A key enabler of a more discrete journey with reduced requirements for applicants is availability of alternate data sources
Predictive risk models - These models consume information captured through historical or current results to classify applications and identify potential risk indicators for each application.
Reimagine innovation to transform underwriting
The puzzle pieces of the blueprint come together scores to create a streamlined journey for fully underwritten cases resulting in
20-30% reduction in cycle time
40-50% reduction in underwriter’s effort
up-to 40% higher Straight Through Processing (STP)
Drive sustained, profitable growth for new business and underwriting
With EXL’s LDS you can speed up your time to market, gain efficiencies to drive your new business and underwriting journey, and get real-time insights for better decision-making.