To unlock business value, insurers need to digitize end-to-end business processes at a level of granularity that enables them to process risks differently according to their fit with the target portfolio shape. Understanding the risk attractiveness before absorbing underwriting capacity enables insurers to outperform in service levels, optimize the effectiveness of capacity deployment and over time fully decouple premium growth from expense growth. At the heart of digitization is the ability to combine together different data sources to provide risk standardization and granular context so that risk flows end to end through business processes.
The granularity of data needed is only achieved when four different types of data are combined – submission data, internal and external data sources and inferred data - which need to be operationalised across multiple steps in a workflow. Relying only on data extracted from the broker submission results in ineffective workflows that do not situate risk in context, are incapable of discerning appetite fit, prioritisation, complexity or cross-sell potential and result in incomplete risks that are not ready for decisionmaking.
Risk flows which treat risk differently
Cytora enables powerful conditionality to be encoded through an intuitive interface that enables risk flows to be triggered in the event of field values. For example, when data is incomplete, risks can receive further data augmentation to evaluate their fit, out of appetite risks can be receive less comprehensive data augmentation from third party sources to balance data usage with value generation, and risks with lower confidence field values can be directed for quality control.
Balance speed, accuracy and expertise objectives
To balance speed, accuracy and expertise objectives, users can specify what fields should be automatically fulfilled, validated or completed through input from risk professionals. Fields where judgement is required can be flagged for review or completion through administration teams to balance automation and accuracy objectives.
Cytora will enable us to grow our scale across our specialist markets, embed and reinforce a data-driven culture and empower our underwriters to provide better service to customers and brokers.”