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Case study

Underwriting Efficiency improves by more than 50% with Terrene’s Underwriting AI

Customer Case Study

Context

Our customer utilizes a unified system aligned around common underwriting, product and distribution strategies, which is what they call A Single View of Risk. This differentiated organizational principle allows the business to originate specialty risks, while responding with speed, capacity and innovative product solutions.

In this case study, we will look at how the leading global specialty insurance group leveraged the power of big data to provide a streamlined underwriting flow with the agents, and improved their internal efficiency with speed and capacity of writing risks. This has resulted in the business being able to scale their business model and write more business with greater confidence with a much smaller group of underwriters.

This leading carrier also has a unique approach to the carrier-broker relationship, where they believe that mutual sharing of information brings value to both parties and fosters better business. The enrichment of the data set by Terrene’s Underwriting AI on the insured, is shared with the broker in case the business decides to decline the risk.

Challenges and Solutions

Lost in Translation

Insurance companies rely heavily on brokers to supply information on clients, and it’s the underwriter’s job to validate the information and write the risks. Typically it’s the last step before the quote goes out to the client.

Many times the clients are not forthcoming with all the information to the brokers, while other times the brokers would fail to furnish all the information to the insurance carrier. More often than not, the information coming from the client to the broker and eventually to the insurance carrier goes through many versions or its essence is lost in translation.

Usually, the relationship between an insurance company and brokers is a one-way street, with brokers bringing insurance carriers the client information, and the insurance carrier would then assess the risk, and eventually decide whether or not to underwrite the risk and cover the client, and at what cost. The communication to the brokers traditionally is a yes/no response, with no further information being offered from the carrier.

The business’s philosophy is to share the information that was found during the process of underwriting with the brokers, thus building a collaborative relationship with them.

ROI stats with Underwriting AI

6k

The business processed 6000 submissions in the last 6 months

300

The business underwriters went through 300 submissions a week with the help of Underwriting AI, which would otherwise require twice the staff

$13 million

The business wrote business worth $13,000,000 with 15 brokers with Underwriting AI

Comparing manpower required to write the same amount of business
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Writing Risks in Unprecedented Times

The current scenario has changed the way many businesses operate, they have adapted in various ways to adapt to regulations put in place by governments and health advisors.

What does this mean for insurance carriers? Being able to access the most current information in real-time or as close to real-time as possible becomes critical. Often, the change in operations of businesses cannot be understood by underwriters because the traditional means is to add more fields to the forms required for data collection. That would result in additional friction in the process, something brokers dislike. Also underwriters are learning on an ongoing basis on how the risks are changing.

For instance, restaurants moved to 100% take out and third-party delivery models, when no dine-in was allowed during lockdown. A few restaurants continue to operate on this model in spite of restrictions being lifted.

In another example, a pizzeria was manufacturing PPE masks in their brick oven. This would not be known through a traditional application form.

In another example from the hospitality industry, hotels have a 30% occupancy by COVID – positive patients when they needed to be isolated from other family members but did not need to be placed in hospitals. This changes the risk profile drastically.

Contextual and Consistent Information

Each underwriter interprets and writes risk differently, and this leads to brokers pitching one office of the same carrier against the other. The business wanted to institutionalize the process so that there was consistency across the organization. This would also allow them to scale faster.

Testimonial and Way Ahead

The fact that Underwriting AI is built by people who understand insurance, and the underwriters’ intent is a great advantage over the competition that tries to fit one solution for all by focusing on data mapping. Terrene’s collaborative mode of working with us is what sets them apart.

Senior VP and Head of Casualty Business
Tier 1 Carrier

The business and Terrene continue to share a successful and collaborative partnership with a common vision to stay relevant and at the forefront of Risk Insights technology with Underwriting AI.