Snap Poll of PC Insurers on Cost Justification of Underwriting Tools
Available Only for Members of the NA Celent Insurance Research Panel
Snap polls reflect questions asked by members of the Celent Research Panel, a group of C level executives in the insurance industry.
This snap poll was fielded December 10 -11, 2020.
The question that was posed was:
One of the other members of the research panel has a question around cost justification of certain underwriting tools/services.
Today, this insurer uses a variety of automation tools to help ingest data for the new business process.
- They have one product to convert ACORD apps from pdfs into data.
- They have one product that converts loss runs into data.
- They have a product that pulls an email, identifies the agency from the email, recognizes documents by document type, and can send the data to the products above that ingest the ACORD apps and convert loss runs. That product also then sends all the documents over to the policy admin system so they’re available for the underwriters.
- They also use a separate data aggregation vendor to pull third party data automatically from a variety of sources.
The question they have for others is around cost justification of all of this. On a pure cost per transaction basis, the cost feels very high – especially if they end up declining the account. But they believe there are other sources of value – e.g. faster turnaround times, agent satisfaction, data accuracy, etc. The challenge is how to validate these benefits in a way that the leadership team recognizes and believes.Questions:
- Do you use a tool/service to convert ACORD pdfs into data? If so, which one?
- Do you use a tool/service to convert loss runs into data? If so which one?
- Do you use a tool/service similar to that described to automate incoming emails with new business apps? If so which one.
- Do you use a data aggregation vendor?If so, which one.
- If you're not using any/all of these tools or services, why not?
- Do you believe you’re getting sufficient value from the tools/services you’re using to justify the cost?
- How have you made the business case? How have you justified the cost per transaction? What benefits did you include in your own justification?
21 insurers responded within 24 hours.