Hi, and welcome. In this video we’ll be exploring how the digital extraction of data can bring benefits to organisations beyond making decisions on immediate risk.

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As we’ve explored in this module, when extracting data, there will be a lot of key information captured which is then stored in a CRM system. This data remains available even if there's no current appetite for a particular risk, so can still be useful to companies beyond assessing for immediate risk. One key benefit of digital extraction is, unlike traditional processes where valuable data might be lost, digital systems keep everything organised and accessible for future reference. Often when not quoting or binding risks, the data isn’t captured and stored, but with digital extraction it can be.

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Let’s take a look at some of the ways in which companies are able to maximise their risk data value beyond the initial extraction:

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Future Opportunities

This data has the potential to present new opportunities in the future. For example, even if a risk isn't suitable now, having its data in the CRM means you can revisit it later. Changes in risk appetite or new opportunities could make previously undesirable risks viable and having detailed records helps in evaluating these opportunities.

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Analytical Insights

Comprehensive data can also provide businesses with analytical insights. The types of submissions received can be analysed to identify trends or patterns which helps in understanding market dynamics and optimising underwriting strategy.

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Discovering Niche Opportunities

Early digital profiling of risks can also reveal unexpected opportunities. For instance, you might find that risks initially deemed unfit actually have a high success rate, indicating a previously untapped market.

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Digital data extraction in underwriting not only streamlines the capture of risk information but also offers significant long-term benefits by preserving data for future use, enabling better analysis and uncovering hidden opportunities. The immediate advantage of having more comprehensive data points further enriches the underwriting process, leading to more informed and strategic decision-making.

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In the next video, we will discuss the strategies and methodologies for effectively deploying data extraction when underwriting risks.

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