FirstBest Underwriting Survey Identifies Data and Analytics Opportunities and Challenges for Insurers
Only 11 percent of carriers surveyed are satisfied with current underwriting data and analytics capabilities
Bedford, MA, September 30, 2014 – FirstBest® Systems, Inc., provider of collaborative underwriting solutions for U.S. and international carriers, today announced highlights from an industry survey on the use of data and analytics in the underwriting process. Among the topics examined were access to data, spend on data and analytics initiatives, and barriers to ROI from data and analytics investments.
FirstBest surveyed a cross section of respondents from both commercial and life/health insurers. Participants included carriers of various sizes representing management, underwriting, business operations, and IT.
The FirstBest survey revealed a notable connection between the utility of data analytics and improved underwriting results — with 56 percent of those surveyed stating that superior data access can directly lead to profitable underwriting. According to respondents, other benefits from data use are better decision making in underwriting (49 percent), and improved underwriting quality (35 percent). Despite the importance of data and analytics noted by survey participants, only 11 percent of carrier respondents indicate satisfaction with current underwriting data and analytics capabilities, and 89 percent indicate dissatisfaction to varying degrees.
“Insurance carriers are increasingly incorporating data assets in their underwriting processes, but they are also often impaired by the task of prioritizing and integrating a sea of data for productive risk assessment and submissions,” said John Belizaire, FirstBest CEO and founder. “In fact, carriers are increasingly relying on dedicated, rules-driven underwriting workstations at the point of decision — and in collaboration with policy management systems — for actionable data and predictive analytics to help increase the speed and quality of risk decisions in mission-critical underwriting.”