Digital Transformation - July 7 2021
“We are living though a dramatic evolution of underwriting capabilities within the industry,” writes Arthur Borden, VP – Product Services, CNA in the Commercial Lines Underwriting Priorities eBook. “It is being driven by the promise of digital transformation, including AI/ML, and all of the risk management, operational efficiencies and customer experience benefits derived from them. The results have typically increased productivity, accuracy and ultimately lowered loss ratios. This transformation is accelerating decision velocity for the underwriter by using the right mix of process and technology.”
The pace of digital transformation in commercial lines underwriting has only accelerated during the past 18 months of the pandemic. “We’ve seen things that many people in the commercial insurance industry said were going to take 5 or 10 years happen in 1 or 2 years,” says Ron Glozman, CEO and Founder of Chisel AI. “Many people think, or used to think, that digital certificates and simple things like online signatures wouldn't be possible, but regulation has very quickly caught up.”
While it's clear that underwriting is going through a major digital transformation, what do we really mean when we refer to “digital underwriting” in the context of commercial insurance? As with any rapidly evolving capability, the answer depends on who you ask. The term encompasses a broad spectrum of technologies that aim to assist and empower underwriters to better manage risk, automate and accelerate the underwriting lifecycle, and be responsive to customers.