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Digitizing Manual Policy Rating and Quoting in Commercial Insurance: Success Story

April 16, 2019

Commercial and specialty insurance policies can be some of the most challenging contracts to quote and underwrite. Unlike personal lines, these policies often involve complex negotiations and back-and-forth collaboration to underwrite and sign. Unfortunately, this complexity means many insurers still rely on highly manual, labor-intensive operations – often with desktop tools like spreadsheets and basic word processing in the background.

This usually means slow turnaround time, which in turn frustrates customers (and agents) who want a simple, fast, digital experience. And these manual processes open up the company to risks from data errors.

So if you’re managing complex contracts or agreements, how can you move these processes to digital, without a complete IT overhaul? Intelledox has successfully worked with several commercial insurers to automate these manual rating and quoting processes and give both customers and agents a digital, intuitive experience. Read on to hear one success story. (And check out this short demo to see how this works.)


Manual Rating and Quoting: Before Digital

Supporting about 500,000 policyholders, this insurer manages a network of almost 1,000 affiliates and 450 agents in the Midwestern U.S. The business was already engaged in a two-year digital transformation project, but that initiative focused on updating back-office core systems, not the front-facing customer experience.

The team was excited to find a way to quickly digitize the customer and broker experiences in commercial lines, without interfering with its core transformation efforts.

Within the commercial lines, the team experienced numerous challenges with its legacy systems and processes:

  • All insurance, quoting, rating and underwriting processes required manual work, with no centralized, core digital system
  • Software and processes were fragmented and involved spreadsheets and legacy applications, resulting in high error rates and lots of manual rework
  • All proposals needed to be created manually in Microsoft Word documents, which was time-consuming and prone to mistakes
  • Agents needed to rekey or copy and paste data between documents, spreadsheets and other applications, and then recreate documents when inputs changed
  • Form NIGO (Not In Good Order) error rates were between 60 and 90 percent, which created work to fix
  • Quote-to-close conversion rates hovered around 25 percent

Underwriting might require up to 2,000 separate data inputs spread over multiple worksheets and could take agents hours to fill out. The spreadsheet couldn’t be sent to clients as the output, because the business didn’t want to expose its underlying rating and underwriting calculations. So they had to transfer the output by hand to another document. And then policies might require 12-15 different iterations before signature.

It’s no wonder the company’s agents found these manual processes to be overwhelming.


Transforming the Policy Rating and Quoting Experience

The business partnered with Intelledox to make these processes easier for their agents and affiliates. Today, the company is transforming how agents capture customer data.

Instead of entering data manually into a spreadsheet, they’ve taken advantage of the Intelledox smart, adaptive, interactive interview process. Clients (or agents) are guided through questions in a simple and easy way, and are only asked for the most relevant details to allow for policy pricing and creation. Interviews are prefilled with known information to make the process even easier.

The Intelledox platform then combines that new customer data with the calculations – still maintained in the spreadsheet – to quickly and easily produce accurate quotes.

This has revolutionized their customer and agent experience. Because brokers and agents can use adaptive digital interviews with their customers, they only have to worry about what’s relevant, instead of every data field.

We’ve worked closely with the business to manage their digital transformation. Although the spreadsheet still plays a role in the company’s pricing and policy creation, we’ve transformed how data gets in and out from the customer. The insurance company gets the benefit of much better customer and broker interactions without having to re-engineer everything at once.

This move towards automated commercial insurance underwriting is intended to make the business easier to interact with and to create a joined up, streamlined quoting and new account opening process. The company expects to see ROI from higher form conversion rates and increased revenue, as well as greater operational efficiency.


How You Can Apply This Approach

Like this client, you can move toward digital transformation gradually. You don’t have to migrate all of your data and processes to digital at once. Instead, you can start by looking at the key pain points in the process and use the flexibility of the Intelledox Infiniti platform to address the front-facing customer experience challenges.

And then you can look into connecting that information with the rest of your core systems end to end. You can automatically combine the right details from your clients with detailed underwriting calculations and rules to easily create error-free policy documents – and create them dynamically in real time.

Strategy Meets Action Research shows that 97% of commercial lines organizations have digital transformation strategic initiatives in play in 2018. You might also be interested in our webinar with SMA on Commercial Insurance: Rethinking Agent & Customer Interactions.

Underwriting is often complicated, time-consuming, and expensive. Find out more about how Intelledox works with commercial insurers to revolutionize the customer journey.

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