Streamlining Submission Intake - PDF document

Streamlining Submission Intake in Commercial Underwriting for Middle Market SegmentsAutomated data extraction of submission documents combined with manual prequalication by support staff will dramatically improve the quality of data that reaches the underwriter, leading to better risk segmentation and pricing. Executive Summary\r\r data computer ­‡ˆ‡ˆ ‡ Here and Now \f\f\r\r\r\r\r \f\t\r \r\t\r\r\f\r‹ \rŒ\r\r\r \t\r‹ \f\r\r \f \f\r\r\r\r\f \f\r\t\t\r \r\f\t\f­\r \f\f\f\t\r  \b\t\t\r\n\f \t\r\r\f   \f\r \r Ž\r\n\f \r\f\t \r\f \t\r\t\r\t \r\r\r \t\rŽ\r\t \r\r\rŒ\t \b\r \r\r\f Key Underwriting Challenges \r\r\r­\r\f \f\r\f\f\n \t…\rŠ„\r\b \r\f\t \f\f\f\f\r ‘\r\r’\r\t\r \r\r\f\f\r\r\r\n \r\r\r\tŠ“”\r\f \t\r\t\r\f \t\t\r \r\r\r\r\f\r \r\r\r \r\r\r\r \r\f\n\t ­\t\r \r\rŽ \t\r\r\t\r\f\f \r\r\f\r\t \r\f\r\t\t \t\r\r \f How Does Submission Intake Happen Today? \t\r\f\r\r\f\f\r\r  \r\f\t\t\r\f \r\r\f\t\r\t\r\r\r\f  \r\n\r\r\r\f\t\r\r\f  \r\r\t\t \b\r\r\n\r \r\n\r\n\t\r\r\r\r\r\r\n\r  \t\r\r\t\r\n\t\r\f\n \t\r\f\r\f\f\r\f •Žƒ–\r\f\t\r\r —ˆ”\f\r\r\r \f“ˆ”\f\f Š \f\f\r\t \r\f\t\f\t\r \f\f
  \t\t\n\t\r\t\r \t\r\f\r„ … \r\f \r\t\r\r \t\t\r\f\t\r\n\r\r \t\r\r\n\f \r\f\f\r\f \f\r\r\r \r\r\f\r\r\r\r\n Based on our experience in working with several commercial insurers, underwriters spend about 15% of their time in validating and preparing submission data. Underwriting Challenges Process InefficienciesHigh Turnaround TimeInefficient Risk Classification and Pricing Reduce the overall cycle time and write more policies without impacting the quality of under-writing. Eliminate redundant and manual data entry. Increase responsiveness to agents/brokers. Reduce the amount of time spent on data gathering and prepara-tion and be more productive. Improve collaboration between agents and underwriters and reduce the multiple iterations. Improve the quality of submission data coming in from agents. Contextualize sensitive data and analysis to aid risk classification Use more sophisticated tools to determine the risk appetite of the …\rŠ ˜ \r\r\r\r\r\t\r \f\r\f\f\t \f\r\f\f\n \r\f
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  €‚–\r\r\f \t\r\t\r\r\r ­\r\r\r\r\r\t\t \t\r Challenges and Issues with Current Submission Intake Process \t\r\r \f\r\r \r\r\r \f\t\r…\r‡ \f\t\t\f †\f\f\r\t  \r\r\r\f\r  \f\r\t•\n \t\t\f\f \t\r–™\r\n\t ™š\r„›\r\r \rŒ\r\r\t•\r\r\n \r–\r\f \r\r \t\f\t\r\f\r\r \f\r\r ‡  Optimized Submission Intake Process: Our View Ž\n\fœ\r\f\t\r \t\t\r\t\r  \r\fŒ\f  \r\t\rž\b  Ÿ\t\rŽ\r \r\f\r\f\f \r\f\n\r\r\t\r\f\n\f\t \r\f
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  €‚–\f\r\r\r\f \r\r \r\r\f\f\t \r\f\r\f\r \t\r\r\f\r’ \f\r\r\f \r\t\t\t\r\f\r\r\r\n \f\r\r\r\r \t\r\t\r\r­ \f\t\r\r\r\t\r\t \f\t…\r˜ \f\f\t\r \t\r\r\f\t\n\f \r\r\r™\r\r\t \b¡ Pain Points in Submission Intake Inconsistent DocumentTypesMissing/IncompleteDataNo Application of AnalyticsPoor Data QualityMinimalTechnologyUsageNo Measureon DataQuality Agents send different document types and file format types. Considerable manual effort in data extrac-tion and validation. Enterprise underwriting gets hit. CAT modeling becomes susceptible to errors. Incomplete exposure data and a fragile ERM increases reinsurance costs. Current methods of data extraction prohibit any analysis on the data gathered. Basic analytical models to determine quick kills or identify missing information or risk classification are not used. Transcription focuses on throughput at the cost of quality. “Transcription” delay also inadvertently“transfers and propagates” the errors in Techniques like OCR and pattern recognition are not effectively used for data extraction. No solutions in the market that do end-to-end extraction of ACORD and non-ACORD forms. No consistent view on the root causes of data quality issues. No measure of accuracy of the extracted data as compared to the source. No information on completeness of the data provided by the agent. …\r‡ ¢ …\r˜ Submission Intake: Current and Proposed View E-mailE-mailSupport GroupSystemCurrent ViewProposed ViewManual Data ExtractionPrequalicationPrep and SupportBind and Issue PolicyRisk Assessment and QuotReview, Risk Assessment and QuoteData Validation, Prequalification, Prep and SupportAutomated Data ExtractionAgent UploadSubmission intake includes automated data extraction, prequalification by support group (which consists of running and third party info and a preliminary risk scoring.Underwriting StaffAgent UploadBind and Issue Policy £  ¤\f\r \f\r\f\t \r\r\f\r\f\f  \t\r\r\r\r\f\r \f\r\r\r\r\r \r\f\r\r \r\r\r\r\f \r\r\f\r\r\r \r\t £ \r\r\f   Œ\t\r\n \f\f\r\r\r\r\rŒ\t\t \r\t\r\f\f\n  \r\r\r\r\f\t\t\n \r\f \r\f¥Ž†\r†Ž \r\r\r\f\f \r\r\t\t\t\r  \b\f\t\t\r \r\r\r\f\f\f \r\rŒ\r\r\n\r \b\r\f\r\r \r\r\r\r £ \n\f\t\b\f\f 
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\f„\n\r\t\f \n¨ˆˆˆ«¨Ž „¡©«Š•ˆ–¢¢¢‡ˆ«¨ˆˆˆ …¡©«Š•ˆ–¢¢¢‡ˆ«¨ˆ¨ˆ ƒ\f¡\r¬­\f © Copyright 2012, Cognizant. \r\r\r¥\t\r\f\f\r\t\r\n\r\r\r\f\n\r\f\r\f\r \f\n\r\n\f\n\t\t\n\r\r\n\r\r\n\t\r\r\t\r\f\r\f­\r\f\r œ\r\r\f\r\f\r\r\t\r\t\r\r\r\t\r About the Authors œ®\f\r„†\r\r\r\r„\r­ŒŽ\r ’™\t\r\n\t\rœ\f\f\t\r œ\t\rœ\r\f\r\r\r\r™ \t\r\t\f\r\r\n\f\f \rœ\f\t\r\r’\b\f\r\f ’\rŽ\f™\r œ®\f\r¬­\f  ®§œ\f\r\nŽ¥†\n†\r\r\r\r„\r­Œ Ž\r’†\t\r\n\t\rœ\f\f \t\r\r\f„›\r\r\r\r\r\r\f \t\r\f®\rŒ\r\r\r\f\r ®\r\t\r\t\f\f\f\r\fŽŽ\f•ŽŽ– \f†\r ®§œ\f\r¬­\f  †\r\r \r\n„\n†\r’\r\r„\r ­ŒŽ\r’™\r\b\r\t\r\n \f\t\t\r\n\r\r„›\r\r\r\r \t\r\r\r\n\r\t\f\r\t\rœ™\rŒ \r\r\r\f\r’\f\r\r\r\f \r™\r †\r\r ¬­\f  §†\r\r\r„\r­ŒŽ\r’ ™\rŠŠ\r\t\r\r\t\r\f\n\r \r\r\r\r\t\r\r\f™„\n’\r §†\r¬­\f