In the past year, most federal banks worldwide tightened their monetary policies, leading to a decreased capacity for insurers and a consequent preference towards underwriting less risky exposures. This led to many insurers dedicating more time to Risk Selection and Risk Pricing, focusing on low-hanging fruits and often skipping moderately risky but high-premium business.
The post-COVID insurance industry was already in a transformational phase, witnessing stretched profit margins due to a decrease in capacity and an increase in digital-first competitors who are more agile and can respond to market needs faster. The need of the hour for legacy companies is to overhaul their systems and adopt a digital-first approach.
Insurance companies handle a large amount of unstructured policy data, right from the personal details of the applicant, property details, property type, and survey details to information about past losses and claims. The problem lies when this data does not ‘talk’ and ‘interact’ with one another to derive meaningful results. Hence, there is a consequential transition happening where insurance companies are increasingly leveraging AI to enhance operational efficiency by automating manual tasks, reducing operational costs, and, in turn, increasing resource capacity to analyze more risk for optimum risk selection.
Specifically, for the P&C Insurance Industry, there is a humongous amount of unstructured and semi-structured policy data in the form of placement slips, ACORD forms, Claims forms, Survey reports, etc.
The life cycle of policy data starts from the extraction of COPE (Construction, Occupancy, Protection, and Exposure) information from policy slips and statements of values, enhancement of relevant information from survey reports, structuring of data, geocoding of locations, the transformation of available data to required format (generally for natural catastrophe modeling), filling up missing information in the format and finally preparing detailed reports for various stakeholders. In the past, finding relevant data in the above process involved manual data scrubbing and extraction from emails, attachments, PDFs, and other relevant documents.
RMSI identified this problem and worked towards automating the key components of the process
RMSI has been working with Insurance companies for more than 30 years. Our expertise in implementing AI/ML-based solutions for Fortune 500 companies, enabled by our proprietary AI/ML models, has helped us to automate most of our client’s processes. We used a similar approach with our Insurance clients and automated most of their processes. Here is how our platform empowers our insurance clients:
- The platform reads and extracts the relevant information, such as the Policy Holder’s Name, Policy details, deductibles, and other relevant fields from the available unstructured data
- In the next step, the data extracted from these documents is converted into a structured format required by our client to undertake underwriting decisions
- Key parameters as per clients’ underwriting guidelines are highlighted
- The gaps in the exposure data (primary modifiers) are filled through our database directory
- Our front-end solution provides the geocoded locations extracted from the database and helps our clients in accumulation tracking
- The financial information from the slips and SOVs is extracted and populated in the relevant fields
- The structured data is then transformed into the model-ready format as per the requirement of our client
- Actionable report recommending Risk Selection for Underwriting is presented based on underwriting guidelines of client
The above ensures that the client can decrease the quote-to-bind turnaround time by more than 75 percent while saving on cost and freeing up their resources to focus on the core underwriting needs.
Our data management solutions enable underwriters to access actionable insights instantaneously, ensure regulatory compliance, and undertake underwriting decisions based on detailed data analytics. We can also help your organization to navigate complex market challenges, boost regulatory compliance, and jumpstart your digital transformation journey. To discuss more, contact us at firstname.lastname@example.org