Casualty Insurance Underwriting and Policy Administration Automation
A casualty insurance company – providing mainly private passenger auto insurance with a specialty in the non-standard automobile market – has a network of over 300 producing agents and brokers in widely dispersed remote offices.
The Underwriting/Policy Administration department of this company is responsible for:
- Examining, accepting, or rejecting insurance risks, and classifying the accepted risks in order to charge appropriate premiums for the new applicants;
- Keeping policy information up-to-date based on data received from multiple sources;
- Analyzing and assuming risk according to insurability for policy renewals.
A rapid rise in transaction rate was anticipated, and the company wished to reduce the cost associated with underwriting and policy administration
The Underwriting/Policy Administration department processes new applications, largely for non-standard customers who might have multiple tickets or DUI records. Therefore, the new application package is especially complex, formed from documents received from multiple sources and compounded by requests for additional information. Such applications, and the ensuing policy adjustments, required processing by multiple users throughout the life of the policy. This was a paper-intensive process. The policy applications and all related documents were stored in paper files accessible by all users of this department. The same file required for policy administration tasks might be waiting for processing on the desk of an underwriter. Retrieving the file took hours and sometimes days. To access policy data, underwriting department personnel had to use a legacy computer system. As a special requirement, legal regulations define rules of document filing and storage and timeframes for the processing. Failure to follow these regulations can lead to financial penalty.