Insurance brokers’ faces have changed along with the business. Today’s insurance broker has a variety of problems, ranging from keeping up with technology advancements to preserving financial stability to handling regulatory changes.
And when it comes to underwriters, there are several procedures that they are unable to do without. Risk engineering is one that we’ve spoken about a lot, but today we’re focusing on policy review and comparison. Before the underwriting process, this procedure helps to assure contract clarity and reduce risk exposure.
However, there is no quick or straightforward way to evaluate an insurance policy. With rules frequently exceeding 100 pages of dense, textual content, completing one comprehensive policy study might take several hours. Insurers are all too aware of these excruciating inefficiencies, as policy reviews are conducted regularly.
Reasons To Conduct A Policy Review
Policy reviews are conducted on certain situations like:
- A new submission is received
- When a renewal request arrives from brokers
- when integrating your local policies with your master policy in worldwide initiatives
- when unexpected situations like COVID-19 expose people to new risks
- when a carrier’s binder is aligned with its policy
All the above situations create huge pressure for the underwriter. So, how can the policy review process be simplified? This is when artificial intelligence comes to the rescue.
What Are Policy Review Pain Points?
The quantity of physical labour needed by underwriters is daunting, given the complexity and breadth of policies. However, there are a few stumbling blocks in the policy review process:
- Throughout the process, resource demands and requirements change, making it challenging to staff appropriately
- It might take up to six hours to review a single policy
- Because there are no standard or uniform standards on which to base evaluations, important information is frequently overlooked
AI-Based Solution In Policy Review Pain Points
The natural solution to insurers’ problems is to automate the policy evaluation process. This, however, necessitates AI’s ability to read and analyse materials at a human-like level of comprehension. Only a model that uses a symbolic approach to artificial intelligence will be able to supply the information needed to decipher the meaning of policy texts.
Our natural language understanding technology, fortunately, accomplishes just that. AI directly addresses the underwriting issues by augmenting human capacity with natural language understanding technology. Before the underwriting process, policy evaluation and comparison assist commercial insurance companies in ensuring contract certainty and limiting risk exposure. Policy evaluation is necessary for:
- New entries are welcome.
- Alignment of Global Policies
- Rare-Occurrence Response
What Are The Benefits Of Using AI In Policy Review?
As artificial intelligence continues to transform various industries, the insurance industry is one such sector which has seen massive change. Some of the benefits include:
- Unintentional exposure is lessened thanks to artificial intelligence
- Because of AI, the accuracy of policies that have been assessed has improved
- AI improves stability and capacity
- AI generates results that are both observable and understandable
As the number of policies and paperwork required grows, language-intensive processes like policy review become increasingly difficult. You’ll continue to miss out on the financial rewards if you can’t adequately help your team in making the review process more efficient.
Policy review may rapidly become an advantage, rather than a burden, with ONPASSIVE’s natural language technology augmenting your manual skills to gather and evaluate essential policy information. Your staff will not only create more, but they will also save time that can be put to better use on other duties.