Insurance : Underwriting Intelligence

Since the insurance industry is rooted in future uncertainties, underwriting is one of the most critical  decision-making processes for insurers. Although it varies by the scale and maturity of the business, the underwriting process generally involves human underwriters, rule systems, and statistical models. 

While general AI applications, broadly known as Underwriting Copilot, Underwriting Analytics, mainly focus on productivity of underwriters, the rapidly changing complexities of the business environment raise the necessity for decision intelligence. Furthermore, due to the implementation of IFRS17 from 2023, insurers must harmonize their business strategy based on CSM(Contractual Service Margin) which highlights the importance of company-wide cooperation between the sales, marketing, actuarial, and underwriting departments. 

As underwriting decisions affect key insurance KPIs, such as loss ratios and sales volumes, well-structured decision-making processes become a core competency for insurers. To improve underwriting decisions, insurers have partially adopted rule-based, data-driven, and AI-driven decision-making processes. However, due to the fragmentation of these processes, it is still structurally impossible to comprehensively simulate, optimize, and monitor decisions,

DEIN Station’s Underwriting Intelligence enables insurers to establish their own decision-making process that seamlessly aligns all decision-making elements. With Underwriting Intelligence, underwriting planners can simulate complex decisions simply, from acceptance or decline, to premium amount, claim limit amount, number of claim limits, and waiting period based on the contradictory KPIs like sales volumes and loss ratios. 

These inter-related decisions have to be evaluated, monitored, and updated in a timely manner. Once a decision model is deployed, during the actual business operations, Underwriting Intelligence consistently captures human underwriters’ decisions to keep the decision-making process up to date. 

Business KPIs ∙ CSM (Contractual Service Margin) ∙ Loss Rate ∙ Acceptance Ratio

 ∙ Sales Volume ∙ Underwriting Cycle-ime

Challenges ∙ Making balanced decisions among contradictory KPIs

 ∙ Discovering profitable segments & products to promote sales

 ∙ Updating UW guideline at the right time

 ∙ Monitoring unknown loss patterns

Decision subjects ∙ Policy Acceptance/Decline

 ∙ Additional Premium or Discount

 ∙ Limit of Claim amount & number

 ∙ Exclusions

 ∙ Waiting Period