Risk management is one of the most challenging– and crucial– functions at any insurance company. Insurers must navigate a complex web of shifting economic and regulatory conditions, an increase in climate disasters, changing consumer behavior and more. Underwriters are on the front lines of this battle, responsible for ensuring profitability and minimizing risk as the business grows.
Underwriting remains highly manual at many insurance companies, requiring underwriters to review several disparate systems to analyze the risk of potential new clients. Fortunately, advancements in technology can substantially modernize the underwriting process. For example, AI models can analyze thousands of risk scenarios to produce detailed risk profiles and pricing recommendations for potential clients. But these models are only as good as the data that feeds them. All too often, companies lack the resources to build and maintain integrations to critical data sources, resulting in inaccurate or incomplete risk assessments.
A data integration platform can provide the infrastructure needed to facilitate accurate risk assessments, but not all data integration platforms are created equal. Here are the features to look for:
1. Any-to-any data integration
Underwriters require data from a variety of sources both inside and outside their company to assess risk. Ensure your data integration platform can ingest data from any source and in any format, including:
- Unstructured data from application forms and documents using tools like Intelligent Document Processing
- External sources such as motor vehicle reports, climate data and property information databases
- Internal underwriting tools and databases
2. A no-code user interface
Limited developer resources at many insurance companies result in long integration backlogs. No-code data integration platforms enable users of any technical ability to quickly set up and manage data integrations.
3. Data integrity and error resolution
Poor data quality can lead to inaccurate risk assessments. Maintain data integrity with an integration platform that includes custom error notifications, root cause analysis and 24/7 monitoring of your integrations.
The right data integration platform can transform your underwriting process to fuel long-term business growth in an increasingly competitive industry. Provide more accurate pricing and approve new customers faster without adding additional headcount.