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In the first in a series of articles on underwriting, Ana Morosan, former underwriter and now Senior Business Analyst at Munich Re Automation Solutions, explores a real-world scenario where a client of several years asked for help in reducing its reliance on manual underwriting and to improve its straight-through processing (STP) rate.
Business challenge
The manual underwriting rate for new business was too high for this leading French life and health insurer. It needed to increase automation and lift STP quickly and cost-effectively.
Solution
The ALLFINANZ Insight analytics and reporting module was selected as a potential driver of STP while maximising the return-on-investment (ROI) on the existing ALLFINANZ SPARK platform which the client used.
An MRAS team of a business analyst and analytics specialist worked alongside the client to explore opportunities using the Insight tool and Rulebook Designer to reduce friction in the application process leading to improved STP on the client questionnaire.
Working with the client the MRAS team quickly identified the main rules and unknown conditions that needed immediate attention and recommended capturing the output using Rulebook Designer, by creating rules of unknown disclosures and where structured data could be captured instead of unstructured free text. The client’s rules philosophy was maintained, however efficiencies were added through expert use of the Rules Designer and Insight.
Additional best business practices to follow were identified:
- Insurer to review the rules and adjust the question and answer type so that responses are more structured.
- Review the rules containing unstructured free text and identify where it can be used to create more structured questions.
- Review of rules and set up in Rulebook Designer to contain the final underwriting result
- Analysis of user behaviour indicated the insurer could improve the user journey by decreasing the length of its interview and focusing on the primary channel where the Insight module could be used.
- Maximize benefits of Insight by passing the final underwriting status back into Insight to help the company better collect data on and understand the final decisions for those cases that have required manual assessment.
All the above recommendations were made in line with the client’s existing underwriting philosophy and risk appetite.
Outcome
The client said the training, and ongoing support, empowered them to make specific, targeted changes which positively impacted its STP and help give them a clearer view of their overall underwriting statuses.
They benefitted from:
engaging with the Munich Re Automation Solutions experts who reviewed the deployment of Rulebook Designer and immediately identified several areas where we fell short of best practice.
creating a project to implement Munich Re Automation Solution’s recommendations and almost immediately we saw a positive improvement in our straight-through processing.
feeding the final underwriting status of any manual cases which have been referred from the software back into ALLFINANZ Insight giving a much clearer, accurate, big picture view of case statuses.
About ALLFINANZ Insight
ALLFINANZ Insight transforms complex sets of new business and underwriting data into consumable and actionable intelligence for all key stakeholders in the new business and underwriting process. The Insight application is available in two variants: Insight and Insight Origin.
It delivers an extensive set of 60 out-of-the-box dashboards. Optimised to provide a deep analysis of your new business processing as well as the ability to create custom dashboards and import additional custom data from the underwriting system.
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