In 2024, a P&C insurer study conducted by Capgemini suggested that 41% of the underwriters’ time is spent on “administrative and operational activities, constraining their capacity and triggering value chain challenges in pricing and broker/customer experience.”

Improving underwriter efficiency has always been a key driving force behind selecting an insurance platform. However, merely adopting a modern insurance platform is insufficient to address some of the current inefficiencies. To truly enhance underwriting efficiency, insurers now have the opportunity to select an insurance platform with built-in advanced AI-based automation and process optimization solutions. Furthermore, selecting a platform equipped with AI capabilities and partnering with a solution provider that is actively investing in AI technologies will not only meet current underwriting demands but also drive future productivity and innovation requirements.

With built-in AI-driven solutions, insurers can streamline operations, reduce manual workloads, and enhance overall efficiency, positioning themselves for long-term success in a rapidly evolving market. A modern platform working in cohesion with its own AI solution is the only way to achieve maximum efficiency and success.

Key areas where AI can bring substantial benefits include:

• Improving User Experience and Automation: AI-powered platforms can streamline and automate repetitive tasks, such as data entry and analysis, thereby reducing the administrative burden on underwriters. For example, Cogitate’s DigitalEdge platform has UW Assist, powered by CogitateLabs, which includes data ingestion capabilities. The AI reviews the input submission forms, automatically identifies the inputs for the submission through its powerful LLM models, and inserts data automatically into the application. This drastically reduces the manual administrative work for the underwriters and improves their user experience.
• Reducing Premium Leakage and Adverse Selection: AI can play a crucial role in minimizing premium leakage by identifying discrepancies and ensuring that premiums accurately reflect the risk associated with each policy. Moreover, AI-driven analytics can detect patterns indicative of adverse selection, where higher-risk individuals might be disproportionately represented. By addressing these issues, insurers can better align premiums with actual risk profiles and improve the financial stability of their portfolios.
• Prioritizing Work: AI can assist underwriters in prioritizing their workload by analyzing and sorting tasks based on urgency and impact. Intelligent systems can assess cases that require immediate attention and those that can be deferred, optimizing the allocation of resources and improving workflow efficiency. This prioritization ensures that critical tasks are addressed promptly, leading to better risk management and decision-making.
• Identifying Demands: Attorney demand letters are one of the biggest challenges facing the insurance industry. Any bad faith claim can have a significant impact, with settlements running into millions of dollars. Insurance companies have to deploy the manual process of reviewing thousands of documents daily to identify demand letters from attorneys. This is a time-consuming and error-prone process. With solutions like Cogitate’s DemandAssist, an AI/ML-based product, significant operational efficiency with an error-free process can be achieved.

Conclusion

AI-based tools are becoming a part of the work process, and proper adoption is key for an organization’s success and sustainability. To effectively leverage innovative tools, particularly AI-assisted solutions, it is essential to first build trust within your team. This involves gradually introducing these tools to address specific issues, consistently using and testing them, and measuring the improvements they bring. By demonstrating tangible benefits and success, you foster confidence in the technology and cultivate advocates for innovation within your organization.

Equally important is finding the right partner, like Cogitate, to support your transformation journey. Selecting the right solution provider who not only offers advanced tools as part of their insurance platform but also invests in ongoing innovation and support ensures that you have a reliable ally in navigating the complexities of modern insurance technology needs. This partnership is crucial for maximizing the potential of AI solutions and achieving long-term success in underwriting and beyond. Learn more about Cogitate at cogitate.com.

The post AI-Powered Insurance Platforms Boost Underwriting Efficiency first appeared on AAIS.

AI Game Changers for Underwriters

With extensive industry experience and a keen eye on the evolution of technology platforms, particularly in AI and underwriting, Schaendorf identified numerous use cases for carriers, especially in underwriting and claims. She also sees significant potential in data access and utilization. Currently, data is often presented in static reports or dynamic formats, but AI has the power to transform how data is interpreted and interacted with.

Advancing Predictive Modeling in Underwriting and Claims Processes

In addressing the future of predictive modeling, Schaendorf explained how Cogitate focuses on its application in underwriting. “We’re looking at the profile of our risks, specifically the risk attributes that come in with each different type of client,” she said. While there are similarities in some variables, many are distinct, and Cogitate’s goal is to use these data attributes to build models that predict outcomes. For instance, Cogitate aims to determine the propensity for a loss ratio based on specific risk attributes.

On the claims side, the objective is to value claims accurately, especially complex ones. “It’s easy to handle the least complex claims, such as glass and towing in auto, but when it [comes] to a case that’s going to go to litigation, how do you set the reserves on that and what does that look like over the life of that claim?” Schaendorf proposed. “I see the ability to use that data and predictive modeling to get a little more accurate and a little better at it.”

Biggest Data Challenges Carriers Face and How to Overcome Them

According to Schaendorf, the biggest challenge carriers face when it comes to data is its structure and accessibility. While some data, like written premiums, policy numbers, and loss ratios, are well-structured, other types are not. This lack of structure poses significant difficulties in obtaining better, more accurate, and more useful data. To address this, Schaendorf believes it is crucial to foster a strong partnership between data professionals and top leadership within a company. “One group has one set of skills, and the other group has the business knowledge,” she explained. Although establishing these standards is time-consuming and may not seem immediately rewarding, they ultimately facilitate faster and more accurate data access.

About Cogitate

Cogitate was formed in 2012 by Schaendorf and her co-founder, Arvind Kaushal, as a digital platform operating on a software-as-a-service model. It is designed to streamline rating, quoting, binding, and issuance across all lines of business, including both commercial and personal lines. This modern-facing platform boasts numerous third-party data integrations, enhancing its functionality. “The proudest thing I can say about Cogitate is it’s an enabler,” Schaendorf shared. Cogitate has seen rapid growth and implementation success with their clients, processing a significant volume of quotes, binders, and premiums through the platform across various lines, such as commercial transportation, personal property, flood, commercial property, and professional liability. “It’s really facilitating growth for our partners, and that’s what we’re most proud of with the company.”

Learn more at Cogitate.com.

To view the full interview with Jacqueline Schaendorf, CPCU, click on the video above.

The post AI, Predictive Modeling, and Data Trends in Underwriting first appeared on AAIS.

Cogitate to offer AAIS Members access to their DigitalEdge platform, strengthening processes and systems for a smooth transition to the digital era.

 LISLE, IL., April 29, 2024 — The American Association of Insurance Services (AAIS) is excited to welcome Cogitate to the AAIS Partner Program.

“We are thrilled to join the AAIS Partner Program and offer its Members the most updated solutions through Cogitate’s DigitalEdge Insurance Platform,” said Arvind Kaushal, Chief Executive Officer and Co-founder of Cogitate. “Our cloud-native, multi-tenant platform, with its configuration capabilities, is designed to help small to regional carriers and farm mutuals efficiently address their needs and challenges. Cogitate is dedicated to advancing the technology essential for AAIS adoption, providing carriers with a platform to enhance underwriting quality and reduce loss ratios.”

“The insurance industry continues to experience rapid change and our Members are always pressed with the need to keep up with the latest advancements to remain competitive,” said Werner Kruck, President and Chief Executive Officer of AAIS. “Cogitate’s digitalization solutions offer innovative ways for AAIS Members to further accelerate their abilities to bring products to market with the latest technologies and efficiencies that fit their business model.”

The AAIS Partner Program provides AAIS Members with unique access to quality products and services that help them streamline processes, achieve operational efficiency, and grow their business. To find out how AAIS Partners like Cogitate can help create better customer experiences and increase speed to market, please visit AAISonline.com or contact the AAIS Member Engagement Team at membership@aaisonline.com.

About Cogitate
The Cogitate DigitalEdge Insurance Platform digitalizes insurance across the value chain, offering insurance carriers, MGAs, wholesale brokers, and program managers a smooth transition to cloud-native, data-driven core underwriting, policy, billing, and claim applications. The unified insurance platform unlocks the value of first-party data and advances the power of third-party data for profitable growth, superior risk selection, and a streamlined, modern user experience.

Backed by more than 100 combined years of comprehensive experience and domain knowledge, our products are uniquely designed to meet the needs of insurance businesses of every size. Find out how Cogitate maintains 100% client retention at www.cogitate.com.

About AAIS
Established in 1936, AAIS serves the property & casualty insurance industry as the only national not-for-profit advisory organization governed by its Member insurance carriers. AAIS delivers high-quality advisory solutions including best-in-class policy forms, rating guidelines, and data management capabilities for commercial lines, inland marine, farm & agriculture, auto, and personal lines insurers. Their consultative and unbiased approach, unrivaled customer service, and modern technical capabilities underscore a focused commitment to the success of its Members. Together with Member carriers, insurance regulators, Partners, MGAs, and other key stakeholders, the AAIS Community is working to build a more cost-effective and sustainable industry. For more information about joining the AAIS Community, visit AAISonline.com.

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Media Contacts

Cogitate
Pamela Simpson
Director of Marketing
psimpson@cogitate.us

AAIS
Wen Tilghman
Director, Marketing & Communications
went@aaisonline.com

Source: Globe Newswire

The post Cogitate Joins AAIS Partner Program, Offering Members Innovative and Transformative Digital Technology Products for the Insurance Industry first appeared on AAIS.