BEDFORD, Ma., Nov. 21, 2013 /PRNewswire/ -- Today's underwriting departments must juggle a constant stream of business in an underwriting process that touches multiple systems and data sources. As a result, many underwriting teams struggle to actually handle all of the business that comes in. Significant amounts of business may never get processed, leading to lost deals, dissatisfied agents and brokers, and unhappy customers. FirstBest® Systems, Inc., provider of collaborative underwriting systems for American and international insurance carriers today revealed highlights from a survey about underwriting efficiency trends among American insurers, addressing time spent underwriting, systems used, and the impact on business.
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Examining the efficiency of underwriting departments across P&C insurance carriers, FirstBest queried attendees of the IASA annual conference this past June and other constituents throughout the summer. The respondents represent more than 40 carriers, primarily in P&C. A majority of carriers stated that underwriting was a key driver of growth and profitability. But underwriting's impact is often limited because of deals lost on account of slow processing, as well as process inefficiencies. For example, some 82% of respondents stated that underwriters spent 50% or less of their time actually doing underwriting. And close to 50% have to access 4 or more systems during the underwriting process. Following are additional findings of the survey.
Underwriting is a top priority for insurers surveyed. When it's done right, underwriting can be an engine for growth and profitability. Carriers were asked "How important is underwriting as a driving force for your business expansion, growth and profitability?"
- Underwriting as a top priority for driving expansion and profits (66%)
- Underwriting was only a moderate focus (29%)
- Underwriting was not a focus (5%)
Underwriters spend a great deal of time on tasks other than underwriting. While some non-underwriting activities such as agent and insured field visits may provide value, many manual tasks do not. 82% of respondents spend 50% or less of their time actually underwriting. Carriers responded to "What percentage of their time do you think your underwriters spend on actually underwriting the risk – not collating the data?"
- 10 to 25% of their time on underwriting (41%)
- 26 to 50% of their time on underwriting (41%)
- 51% or more of their time on underwriting (18%)
"These results confirm what we hear from carriers every day: that improved underwriting efficiency is measured in strong business results. These findings demonstrate that underwriters need tools that are designed to fully optimize the underwriting process, unlike 'core' policy systems," stated John Belizaire, Co-Founder and CEO, FirstBest Systems. "Carriers are demanding underwriting workstations that rapidly bring all internal and external data together in one place, enable collaboration between underwriters and agents, and enforce consistent underwriting so that the underwriter can make the best decision in the least amount of time."
The 2013 Underwriting Efficiency survey is part of FirstBest's ongoing insurance underwriting and front office research program. FirstBest domain experts continually research and share industry best practices and trends in order to drive transformation and innovation in insurance underwriting and the insurance front office. Other recent surveys include Mobile Technology for Insurance, Market Needs and Trends: Underwriting Management, State of the P&C Market, these and others can be downloaded by visiting www.firstbest.com
Click here to download the results.
FirstBest Systems, Inc.
FirstBest® Systems is the leading provider of insurance software solutions that help American and international insurance companies improve underwriting profitability, scale their business and achieve high service levels with agents, across the enterprise. The patented and proven FirstBest Front Office Suite has processed more than $12 billion in quotes and includes modular underwriting workstation, mobile underwriting, agent portal, and agency upload applications. Global companies such as XL Group plc, a global insurance and reinsurance company and OneBeacon Insurance Group - a leading specialty insurance company, and other leading carriers such as Chesapeake Employers, ICW Group Insurance Companies and others rely on FirstBest to improve underwriting efficiencies and quality, institutionalize knowledge and best practices, and empower everyone in the process to rapidly quote, collaborate, issue, and bind business on a single real-time platform from anywhere. To learn more, call +1-781-863-6000.
FirstBest is a registered trademark of FirstBest Systems, Inc. FirstBest Front Office Suite, FirstBest UMS, Underwriting Management System, FirstBest UMS Express, FirstBest UMS Mobile, FirstBest Agent, FirstBest AppReader and FirstBest BA Studio are trademarks of FirstBest Systems, Inc.
SOURCE FirstBest Systems
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