Gartner Research

New Underwriting and Workflow Technologies Driving Life Insurance Profitability

Published: 19 March 2012

ID: G00232487

Analyst(s): Steven Leigh

Summary

Electronic underwriting and new business workflow technologies are transforming North American life insurers' processes and providing new ways to design, price and deliver insurance products. Plan to deploy underwriting workflow and electronic underwriting systems to maintain your competitiveness.

Table Of Contents
  • Impacts

Analysis

  • Impact: Underwriting in minutes is saving money and is fast becoming the norm with the use of new workflow and underwriting tools; this leaves insurers with longer underwriting cycles and increased costs at a competitive disadvantage
  • Impact: New underwriting tools are enabling life insurers to create new products that leverage technology and different underwriting requirements to create a cost-competitive blend of simplified issue and fully underwritten product elements
  • Impact: In three to five years, the ability to capture underwriting guidelines and decision styles and to quickly change underwriting rules with electronic underwriting tools will give life insurers unparalleled ability to compare claims experience with underwriting decisions and respond with small adjustments to the decision methodology
  • Impact: Insurers that achieve issue times in minutes will be able to develop new sales channels that position life insurance as an add-on, rather than a primary product
  • Impact: The automation of the underwriting decision process will decrease life insurers' requirements for human underwriters, thereby lowering costs and avoiding underwriting resource constraints

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