Underwriting

Underwriting

From Detective to Risk Manager

Underwriting is all about balancing the efforts and the benefit of risk management. Risk management is based on the information you need to request from your sales partners, and finally, your clients. It is thus very important to know how much risk appetite you have, which information you require and how to design all your corresponding (manual, digital and automatized) processes. Finally, the underwriting team´s know-how, mindset and the organizational structure are vital in sustainably bringing this to life.

For sustainable change, transformation must happen on three levels:
1. Content, 2. Processes and Structures, 3. Culture, Mindset and Personal Development

Automated underwriting 2.0: A complete transformation.

Mission: Develop and implement the “future vision underwriting” of a risk assessment area with an already established point-of-sale solution.

Content:

  • Increased straight-through processing rate in disability, basic capabilities, and life insurance for multiple distribution channels
  • Revising information requirements such as GP reports, medical certificates and questionnaires while maintaining the same risk quality.

Process:

  • Improvement of customer and sales friendliness through streamlined rulesets and layman wording.
  • Continuous Optimization of Point-of-Sale rulesets: Establishing data-driven processes for continuous improvement of straight-through processing rates and monitoring mechanisms to meet risk management requirements

Culture, Mindset and Personal Development:

  • Revision of task and role profiles together with employees, as a basis for redesigning the allocation of tasks and team structures.
  • Elaboration of content and process improvements together with “agile” employee teams
  • Introduction of a new communication approach towards distribution partners, with underwriting in the driving seat
  • Development of a training and development concept, accompanied and implemented by team members

An optimized underwriting manual for a more competitive market positioning

Mission: Revise underwriting manual for a more “loop-free” underwriting and improved market positioning.

Content:

  • Redefinition of the underwriting manual in a close, now institutionalized exchange with the actuarial department and sales partners
  • Data-driven revision of information requirements, especially in disability insurance, with a significant reduction of information requirements and with optimization of questionnaires, thereby realizing cost savings.

Process:

  • Faster feedback times to distribution partners and more final decisions, using clear decision guidelines in combination with the revised underwriting manual
  • Establishment of a (data- and experience-driven) process for constant maintenance of the acceptance guidelines by a project team of experts specially trained for this purpose

Culture, Mindset and Personal Development:

  • Establishment of a continuing education program that is closely linked to changes in the content of the underwriting manual
  • Enhanced (decision-making) competence through training and a change in mindset focused on more personal responsibility for underwriting decisions

From manual underwriting to a point-of-sale system

Mission: Develop & implement a vision for underwriting based on the collaboration of underwriting, actuarial and product management.

Content:

  • Partial re-definition of the underwriting policy in close collaboration with actuarial, product management and the board of directors
  • Data-driven revision of information requirements, especially in disability and life insurance, focused on reducing requirements, while simultaneously optimizing questionnaires, etc.

Process:

  • Risk-based review of the internal interface portal between underwriting and the policy service for a faster conclusion of straight-forward cases
  • Accompanying the decision and selections process towards a point-of-sale risk underwriting tool

Culture, Mindset and Personal Development:

  • Establishing a cross-functional project collaboration of underwriting, product management and actuarial.
  • Supporting the organizational restructuring of underwriting into another department.

Supporting the development of a point-of-sales app

Mission: Supporting the development of a structure for and the implementation of the ruleset for a self-developed point-of-sales app.

Content:

  • Rulebook development for income protection and life insurance; provision of insurance medical expertise. Supporting the internal quality assurance and risk management process.
  • Preparation and support of approval process with the leading reinsurer

Process:

  • Together with the client, from ground-up development of the overall structure of the rule book
  • Elaboration of an efficient process in setting up and reviewing the rule-set development

Culture, Mindset and Personal Development:

  • Introducing the client’s insurance medical expert to basic rule-set development know-how “on the project”