Search
 

Underwriting and Business Intelligence: Art Meets Science

Data-driven technology has allowed insurers to automate much of underwriting in some areas of P&C, but the larger goal of transforming underwriting form an art to a science is achieved by making better use of business intelligence to increase efficiency and improve outcomes.

By Michael P. Voelker | Updated on November 20, 2013

It’s generally accepted that the first automobile policy in the U.S. was sold in 1897 in Dayton, Ohio. For more than 100 years, automobile insurance would be underwritten fundamentally the same way as that first policy: manually and customer-by-customer. However, the effort that began more than 10 years ago to apply business intelligence to auto-insurance underwriting has transformed what had once been an art into a standardized and automated process at many carriers, where manual processing is the exception rather than the rule.

“Personal auto is clearly the most advanced and most mature in its use of business intelligence and analytics. It really is a science,” says Deb Smallwood, founder, Strategy Meets Action (SMA). She believes that homeowners is the next line poised for a process evolution, with the only limiting factor being gaps in available data.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.