Munich Re hails Augmented Automated Underwriting as 'inevitable destination'
Analysts at Munich Re Automation Solutions, a subsidiary of global reinsurer Munich Re, believe that companies that will adapt the next generation of automated underwriting will be able to revolutionise their customer experience in the re/insurance industry.
A new report by Munich Re Automation Solutions has hailed Augmented Automated Underwriting (AAU) technology as the next generation of underwriting that will enable greater underwriting accuracy, minimises false positives, and reduces spikes in risk.
It stated that advanced analytics, predictive modelling, and machine learning will change underwriting processes and allow firms to transform their customer experience.
The report examines how AAU builds on and evolves previous technology investments and implementations, and whether the technology is the "inevitable destination" for life insurance underwriting.
“AAU provides the answer for two of the biggest priorities for life insurance firms, meeting the expectations of an increasingly tech savvy customer base, and satisfying internal pressure to bring down the cost of onboarding," said Paul Donnelly, executive vice president EMEA at Munich Re Automation Solutions.
"Those who successfully adapt will be able to harness the power of AI to unlock greater business value from advanced analytics applied to an ever-increasing list of data sources," Donnelly added. "Ultimately, this will allow firms to transform their customer experience, offering a journey which is easier, quicker, and less likely to be uncompleted.”
Munich Re described AAU as the product of three critical components - technology, analytics and insurance expertise - that highlights the common challenges faced by the life insurance industry and will help firms face these head on to achieve common goals.
Donnelly continued: “This technology is allowing us to reinvent the customer experience of the life insurance market, whilst making sure that firms don’t fall foul of regional data regulations. Augmented automated underwriting will allow greater underwriting accuracy, minimise false positives, and reduce spikes in risk.”
"A key advantage of AAU is that it can be built into existing systems, however this is a complex journey, so firms need to select the right partner to ensure implementation success,” he concluded.
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