Underwriting workbenches are platforms that streamline the underwriting process for commercial property and casualty (P/C) insurance by integrating various data sources, tools, documents, and systems into a single user interface. These workbenches have evolved considerably since Datos Insights’ last review of this space in 2019. In addition to nonfunctional advances in configuration and delivery as Software-as-a-Service (SaaS) solutions, heightening competition is driving solution providers to differentiate their offerings with digital and data capabilities. Some workbenches are implementing generative AI, creating another element of differentiation via a development that promises to deliver significant value to underwriting teams.
I recently wrote about current commercial underwriting workbench trends and prominent providers in the space in Datos Insights’ report P/C Commercial Underwriting Workbench.
Challenges and Trends
There are several challenges that are putting pressure on insurers. One such challenge is increasing competition among carriers. The P/C insurance market is highly competitive and dynamic, with new entrants, products, and customer expectations. To differentiate themselves, insurers need to offer superior underwriting services, such as faster turnaround times. Additionally, underwriting workbenches can help insurers price more accurately and improve risk selection, despite increasing levels of risk complexity.
Underwriting workbench platforms streamline the underwriting process by integrating various data sources, tools, documents, and systems into a single user interface, enabling insurers to stay competitive in the market. Some platforms can also leverage artificial intelligence (AI) and automation to assist underwriters in making faster and better decisions.
Workbenches automate repetitive and manual tasks, such as data entry and incomplete submission follow-up, and provide third-party data and insights at the point of interaction, freeing underwriters to focus on more value-added activities. Additionally, underwriting workbenches facilitate improved coordination and transparency among underwriters, and their distribution partners by enabling the sharing of data, documents, and notes across the workbench platform.
Strategic Considerations
When considering an underwriting workbench solution, insurers must consider several factors regarding current and future technology needs and business priorities. Four key areas that insurers should consider when implementing an underwriting workbench are:
- Supporting multiple PASs: A stand-alone underwriting workbench can fit into an IT strategy seeking to centralize and manage underwriting rules and processing for insurance products supported across multiple back-end PASs.
- Simplifying the policy administration blueprint: A workbench can help insurers simplify PASs by shifting PAS underwriting functions to the workbench, allowing for simpler upgrades, maintenance, and integration support.
- Buy vs. build: Most insurers purchase underwriting workbenches, but some choose to build them. Many internally developed solutions lack all the features provided by vended workbenches, but do address the immediate needs of the insurer and can enable further differentiation.
- Use of low-code platforms: A low-code approach involves visual, model-driven development with minimal coding that can accelerate workbench implementation. Some low-code vendors provide ready-made components and integrations purpose-built for core insurance, including underwriting.
To read more about current commercial underwriting workbench trends and prominent providers in the space, access the full report here.
