Automated Underwriting Versus Manual Underwriting

When it comes to selling insurance, one of the biggest factors in how many leads you can generate is how well you can handle underwriting. No matter how good your marketing team or customer service is, your business is bound to fail if you do not have an insurance underwriting system. When it comes to underwriting systems, you choose between manual and automated or a blending of the two.

What Is Manual Underwriting?

You do not have to have software to have a good underwriting team. However, it will take longer because underwriters have to deal with a lot of paperwork. He or she needs to look through tax returns, bank statements, proof of employment and more. Then, he or she uses that information to determine whether the person is high risk or low risk and which insurance rates should apply.

What Is Automated Underwriting?

With automated insurance underwriting, the software uses advanced artificial intelligence and machine learning to evaluate risk, to determine coverage for a client and the price. Generally, the technology works with the underwriting guidelines to determine if a client is too high of a risk. Automated underwriting software still produces personalized results.

When it comes to your underwriting system, you must have a solid system that will help you gain new clients and keep the ones that you already have. Using a mix of automated and manual underwriting allows you to deal with unique financial situations.