The Future of P&C Insurance in Canada: Part 2 – Underwriting and Pricing

In our first article outlining the future of P&C Insurance in Canada, 我们讨论了保险公司如何并将继续投资于数字化转型议程,以努力在这个采用现代商业实践相对缓慢的bet9app中重塑分销和服务. 我们通过关注消费者(包括个人和中小企业)如何开始以不同的方式与运营商和经纪人互动,以获得新政策,并在这些政策生效后为他们提供服务,来说明该bet9app将如何发展.

In part two of our three-part series, 我们关注保险公司如何改变他们的承保和定价实践,使之更加复杂, efficient, and profitable.

Underwriting and Pricing

From an underwriting, pricing, and risk selection perspective, two factors will impact risk assessment, pricing, and underwriting in the future:

  1. Data collection and use
  2. Increased use of automation and integration of technology

Data collection and use

Concurrent to the digital transformation wave is the rise of big data. As a result, 许多保险公司正在关注他们的企业架构,并建立数据湖,希望在未来实现利益. The promise of these benefits is high as the variety, velocity, and volume of data continues to increase, and insurers create the infrastructure, capability, and culture to exploit this data. Historically, external data sources have been expensive in Canada relative to other geographies, such as the UK where much of the data used for selecting and pricing risks is free. Still, 省级监管机构和合作组织,如保险运营研究中心(CSIO),明白数据对该bet9app的价值. 数据使保险公司能够更有效地承保和定价政策,同时为客户提供更好的服务, improving combined ratios, and passing collective savings on to customers.

By accessing additional data from outside parties, 直接保险公司可以减少承保问题的数量,从而带来更好的客户体验. Digital quotes will have a much higher completion rate, and the average handling time (AHT) of calls should get shorter. Operationally, this makes a lot of sense, particularly if the cost of data acquisition decreases.

Lastly, 保险公司一直在寻找替代数据源,以更好地理解客户行为,更准确地承保和定价政策. Insurers have had a love/hate relationship with telematics. Data collected through an external dongle evolved into mobile apps, and more recently, car manufacturers have been embedding this technology directly into the cars they build. The regulatory environment varies provincially on how this data can be employed. It’s alright to offer a discount, but surcharges for poor driving aren’t yet permitted, although this too could change.

Moreover, regulators are looking to encourage product innovation. 这次大流行使人们清楚地认识到,需要一种真正的用户基础保险产品,更好地为人口服务. For example, there has been a great degree of variability in how people use their vehicles during the pandemic; hundreds of thousands of cars are sitting idle driveways because many people haven’t commuted to work since March 2020. 安大略省金融服务监管局(FSRA)对UBI采取了比其前身更先进的方法,通过改变保险法来鼓励创新. FSRA has also created a ‘sandbox’ that allows insurers to pilot innovative initiatives. 这使得保险公司能够在推出大规模项目之前,更快地向市场推出以消费者为中心的新产品和服务,以响应不断变化的消费者需求.

Increased use of automation and integration of technology

Data scientists analyze data on computer screens on insurance pricingDespite the implementation of modern technology platforms, several processes are mired in manual work. For example, 我们在上一篇文章中概述了商业保险领域的接收过程通常是手工的、耗时的. Individual underwriters or underwriting assistants ingest a risk, triage who is best able to quote that risk, and then pass it onto an underwriter to complete a quote.

现代承保机构将利用技术大幅加快所有这些步骤的步伐:

  • Intake & Triage: Use of optical character recognition (some of which are AI-based), natural language processing, 以及文本分析,以确保风险被数字化,并快速准确地纳入系统. Robotic process automation (RPA) can route the appropriate risks to the individual underwriter, using rules to establish a general priority. Insurers can also use artificial intelligence (AI) to know in advance if a specific risk is worth quoting at all, which will free up valuable underwriting capacity through rapid declines.
  • Risk Assessment and Pricing: Use of new data sources and risk propensity models with AI-based rules engines that include 3rd party and proprietary data sources to assess individual risks more quickly and efficiently. 应用前瞻性预测和动态定价模型,考虑市场条件和数据来源. 大型保险公司将在投资和使用这些新的数据来源方面具有竞争优势, whereas smaller insurers could be ill-equipped and suffer from anti-selection. In response, 我们可以看到更大程度的整合或小型保险公司之间的合作,共同利用新的数据源.
  • 还值得注意的是,动态定价模型在加拿大是禁止的汽车保险,因为费率需要提交. 但是,应用类似的方法可以增加费率提交周期,并减少单个保险公司费率与前瞻性索赔经验不一致的风险.
  • Underwriting Processes: 使用工作流工具和案例管理实践的承销转诊流程确保了更复杂的风险不会“在系统中丢失”,并有更快的周转时间.
  • Binding: 通过数字渠道快速有效地绑定策略的能力允许客户自己完成销售. Underwriters have workflow tools that make the process quick and efficient, 通过自动/虚拟承销商或代理与经纪人或客户(在需要时)建立bet9app.

By becoming more adept at using data and optimizing processes, the modern insurer should be able to obtain several outcomes concurrently that will:

  1. Increase productivity through workflow tools and automation
  2. 通过应用新的数据源和使用现代数据科学技术,更好地告知所承保的风险,提高定价模型的准确性
  3. 改善有效保单组合的资本配置和管理,以更好地了解所需的帐面质量和资本储备
  4. 更好地理解在承保或索赔期间可能导致欺诈事件的标记
  5. 通过在定价决策背后提供更好的数据,改进与经纪人或代理人就商业风险进行的谈判
  6. 更好地了解有利可图的细分市场,更快地开发新产品以满足客户的需求
  7. Ensure that customers are adequately covered through the next best action propensity models
  8. Improve the ability to detect and fight fraud at the point of origination

As insurers continue to implement and enhance their core pricing and underwriting systems, add automation, and augment with complementary applications, insurers will become more customer-centric and operationally efficient. In addition, improved pricing and underwriting systems can support simplified products, enabling customers to use self-service channels to purchase and service their insurance policies. 正如上文所述,有一些改进肯定会影响承销和定价, perhaps the biggest changes are occurring within the claims function. Our next article will explore the claims journey 以及创新和人工智能将如何创造更有效、有助于限制索赔频率和严重性的成功客户体验.

To learn more about Burnie Group’s insurance capabilities, contact us.

By: Andrew Wolch, Practice Leader, Insurance