Human-AI Collaboration - Here's The Secret

The insurance underwriting segment faces a dilemma. Remain manual or embrace the AI-powered alternative.

A Capgemini report states that 62% of insurance executives see AI a solution to elevate underwriting quality and reduce fraud.

Accenture in fact states that there is demand for ‘more, better, and faster underwriting services’ with customers eager for a personalized experience.

But, where did underwriting start? And who can make the human-AI collaboration in underwriting fruitful?

Journey of Underwriting - Tradition to Innovation

Underwriting started with quills and paper.

Then came the digital age with clunky software. Applications were introduced to make the process a bit easier. These are still considered traditional processes because there was still human judgment at work.

It was slow and inconsistent. An innovation change is needed. A new paradigm is on the horizon.

In fact, McKinsey estimated that insurance firms who digitized their operations reduced operations costs by 40%.

But, the true innovation revolution isn’t just the tools.

For example, Underwrite.In has come up with a centralized shared mailbox. All the insurer’s critical information is stored here. The complex claim-related information is then presented in an intuitive user interface.

The underwriter’s role has also evolved. No more a human calculator, the underwriter is now a strategic analyst. He/she now needs to adapt to AI-powered platforms to navigate compliance risks.

Want to see what the future of underwriting looks like? It’s bound to save you lots of money.

Human-AI Collab in Underwriting Challenges

The human-AI synergy holds immense potential. You get streamlined processes, enhanced accuracy and a personalized risk assessment solution.

But what about the hurdles? What about mitigating bias or acceptance among human underwriters?

Some of those challenges in an human-AI collaboration for underwriting include,

1. Quality of Data

Can an AI-platform for underwriting handle unstructured data and its sources?

The unstructured nature of data is an underwriting challenge. Finbox reports that, close to 80% of data received by underwriters is unstructured. These include sources such as PDFs, forms, and emails.

Can an AI-platform decipher what this unstructured data is? Can it collate all this scattered data into a single, unified, and centralized storage?

Not doing so can lead to inaccurate predictions and of course, flawed decisions. 

2. Cost of Upgrading

Most insurance company systems are outdated legacy ones. They aren’t designed to integrate modern AI upgrades.

Plus, the cost of migrating to an AI-powered underwriting solution is something of a barrier.

Did you know?

The underwriting industry faces a potential $85 billion efficiency loss over the next five years, as underwriters spend time on non-core administrative tasks. This is according to Accenture.

Is there a cost-effective AI-powered solution that solves both challenges? That of not spending too much on migrating to a new, robust, and automated underwriting solution.

Including, letting underwriters use the time saved on manual tasks on company-productive tasks. 

3. Compliance Risks 

Nobody wants an algorithmic bias. AI models are trained on historical data. These will of course contain past human errors and biases. These incorrect data can amplify biases leading to data risks.

AI models are like the agents from the Matrix. A wrongly configured or corrupted one can make it troublesome for underwriters. Not to mention, the legal and ethical problems it can pose.

So why not keep it simple and introduce a centralized mailbox for insurance brokers to send sensitive information?

4. Building Trust

AI can automate routine tasks. It can’t however replace human judgment. Underwriters definitely need upskilling. Underwriters know the benefits of an AI-powered platform and there is a fear of being displaced.

A human-AI collaboration for underwriting will only happen with trust. Instead of replacing humans, proper training in understanding tracking KPIs or utilizing a dynamic dashboard for underwriting works best.

The Future of Underwriting

We see the future of underwriting as a relationship. A relationship between AI and underwriters. A future where an underwriter no longer just processes underwriting claims.

He/she is engaging with an AI-platform to monitor claim statuses, modify submissions, assess risks, and optimize the process continuously.

We provide the ‘red pill’ that unlocks the full potential of underwriting.

Underwrite.In’s AI-powered platform is the future because it,

• Allows faster decision-making through concise summaries.

• Provides comprehensive submission control to underwriters.

• Aids in real-time performance monitoring.

• Improves accuracy and enhances customer experience for underwriters and customers.

In our future, an underwriter is not obsolete. He/she is the ‘pitot’ that drives the underwriting process along with Underwrite.In as the vehicle.

By adopting our AI-powered platform insurers can navigate insurance-related complexities.

All this improves accuracy, reduces operational costs, and provides an exceptional experience.

See it for yourself.

Team Underwrite.In