How Data and Technology Can Drive Better Underwriting Decisions
Data and technology improvements are key to helping insurers make more informed underwriting decisions across all lines of insurance. This is certainly the case for underwriters in the Financial Institutions (FI) Management and Professional Liability insurance market. With greater access to better quality data, FI underwriters can make more accurate assessments of their risks and therefore provide better terms and prices to their insureds.
Technology is also critical in reaching broader distribution channels. It provides the broker with more valuable data that enables them to find the best solutions for their clients. Digital tools also allow insurers to connect with a wider audience through social media.
However, it hasn’t always been that way. Traditionally, insurers have been notoriously slow to adopt new technology and fully harness their data’s potential.
“We are seeing a shift across the industry towards more capital investment into technology and data solutions to better improve insurance results,” said Ryan Nava, D&O/E&O Financial Institutions Leader at Nationwide Mutual Insurance Company. “That is certainly the case here at Nationwide.”
This may be due in part to the advent of Insuretech, artificial intelligence and other technological advances in the insurance marketplace. Insurance companies are now much better equipped to collect, mine and analyze their data. The ability to quickly and efficiently spot key patterns and trends between underwriting and claims enables them to leverage this data to provide the best end product or service to the customer.
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