When an insurance business is completely based on paper-processes, shifting to an entirely new set up may seem like a difficult task. Transition from paper-based manual underwriting processes to automated underwriting processes requires time and planning. In such a circumstance, it may be better to opt for a solution that offers partial automation of the most vital element in insurance processing, underwriting.

The approach of tele-underwriting makes it possible for insurance businesses to incorporate partial automation. What does this involve? The idea behind tele-underwriting is simple; the data necessary for risk analysis is gathered by a telephonic interview. The information is entered in an automated system, which analyses the risks associated with the applicant based on this data and determines the right policy and products for them.

How does the process work? A telephonic interview with the applicant is necessary for the accumulation of the relevant medical and non-medical data. There are two ways of accumulating this information:

The sales agent fixes a telephonic interview with the applicant but does not accumulate any data. It is the task of the experienced staff member to conduct the telephonic interview and collect the necessary details.

The sales agent collects all relevant information, medical and non-medical, from the applicant in a telephonic interview. A specialised underwriter may contact the applicant if any expansion on the disclosures is necessary.

The data is submitted to the automated system, which analyses the risks and determines the right policy for the applicant.

How is it advantageous for the agents? The more policies an agent sells in the least time, the more commission he/she would earn. Insurance applications are processed and policies generated within a short time by the automated system after the agents submit the data collected from the telephonic interview. This reduces processing times and increases sales, which means more commission for the sales agents.

How is it advantageous for the applicants? Even a few years earlier, you had to wait for days to get an insurance policy. Using the underwriting software for partial automation ensures that the policy is issued within a short time, and more accurately. The policy is generated within a day or two of the telephonic interview, depending on the system. As the system delivers fast and accurate results, customers find the service satisfactory.

How is it advantageous for an insurance business? When costs are lowered, time is reduced and sales are increased, an insurance business is sure to succeed. As most of the task is handled by the sales intermediaries, professional underwriters are free to resolve other complicated issues. Opting for partial automation helps a business to enhance customer satisfaction and loyalty, necessary for retaining present customers and gaining new customers.

Tele-underwriting makes it possible to achieve success for insurance business looking for partial automation of the underwriting process. However, if you want to stay ahead of your competitors, going a step further with point of sale underwriting may be a better idea. This system enables the insurance business to automate the entire process of underwriting by placing the right tools at the point of sale.