Automated Underwriting

From The Original Insurance Wiki

Part One: Program Structure

Part Two: The Regulatory Environment

Part Three: Sources of Underwriting Information

Part Four: Analyzing Underwriting Information

Part Five: Automated Underwriting System Design

Part Six: When and Where to Underwrite

Part Seven: Disguising your program design

Summary

Introduction

The process of underwriting Private Passenger Automobile insurance has evolved rapidly over the last few years.

The increased use of…

• web-based rating and

• web based policy issuance systems,

the ready availability of real-time…

• Motor Vehicle Records

• Credit Scores

• Accident Histories

and the development of…

• “expert underwriting systems”

have combined to completely alter the meaning of the term “underwriting”.

This combination of technologies enables carriers to simultaneously…

• reduce underwriting expenses

• lower loss ratios

• enhance service to agents and insureds

We are now at a point where carriers that lack such an integrated system are at a serious competitive disadvantage in the marketplace.

The purpose of this document is to provide an overview of the modern underwriting process for Private Passenger Automobile (PPA) insurance.