Claims Data in Underwriting: Achieving Balance and Benefit

Nov 24, 2023

In the insurance world, the information provided by claims is becoming increasingly important. Often much of the focus is on quantitative data, but effect strategies must also address the qualitative data. While quantitative data offers the hard numbers and metrics, qualitative data provides context and insights from conversations, underwriting referrals, and discoveries made throughout the claims process. Both types of data play a crucial role in shaping a comprehensive understanding of risks and customer needs. The focus cannot just but on the numbers, but must consider the people. Both in what data the people hold and what data they need.

Making Claims Data Approachable for Underwriters

For underwriters, the challenge lies in making claims data—both quantitative and qualitative—less daunting and more relevant. Rather than overwhelming them with extensive spreadsheets, it's about providing a clear understanding of their specific book of business, blending hard data with the nuanced stories behind the numbers for more informed decision-making.

Tailoring Data for Every Level

Data needs within an insurance company vary depending on one's role. Management requires broad insights for strategic planning, while frontline staff need specific, actionable information. Developing systems that cater to these varying needs is key to enhancing communication between underwriters and claims teams.

Leveraging Technology to Bridge Gaps

The rise of cloud computing platforms like AWS and Azure has revolutionized data handling, especially for smaller entities like MGAs and TPAs. These advancements level the playing field, allowing smaller firms to engage in sophisticated data analysis and maintain competitiveness.

Integrating Communication Channels

Integrating effective communication channels between claims and underwriting is essential. Modern, affordable technology facilitates these connections, ensuring that both quantitative and qualitative data are efficiently shared and utilized across departments.

Empowering Small Insurers and MGAs

Small to medium-sized insurers and MGAs are uniquely positioned to benefit from these technological shifts. Their agility allows for rapid adoption of new technologies, providing a strategic advantage in a market where comprehensive data analysis is crucial.

Encouraging Collaboration and Comprehensive Data Focus

As we look towards the future, it's imperative for insurance entities, regardless of size, to maintain a balanced focus on both quantitative and qualitative data. Collaborating closely with claims and underwriting departments is essential to determine what data is needed and how best to deliver it. By doing so, insurers can ensure they are fully equipped to make informed decisions, tailor their products effectively, and ultimately enhance their relationships with customers.

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