Bionic Underwriting – What Is It, And How Does It Work?

Bionic underwriting means using technology to enhance underwriting and the distribution of insurance products.

What is Bionic Underwriting?

Essentially, bionic underwriting means using artificial intelligence (AI) to automate certain time-consuming tasks that would previously have been handled manually. This gives insurers more time to focus on areas that deliver the most value for their customers. And when they can focus on these things, they can work to improve them.

Bionic underwriting means using AI to automate tasks previously handled manually

Why Is It Called “Bionic Underwriting”?

The word “bionic” can mean:

“Having normal biological capability or performance enhanced by electronic devices”.

So, when we talk about “bionic underwriting”, we’re talking about a collaboration between humans – the underwriters – and machines – the systems, or the AI.

How Does Bionic Underwriting Work?

The term “bionic underwriting” can refer to any arrangement in which an underwriter makes use of tech to streamline or enhance their role. This might involve using AI to automate certain tasks, or to identify the sort of insights in datasets that humans might not otherwise spot.

Examples of the underwriting tasks that can be automated or enhanced by AI might include:

  • Data entry
  • Processing of structured or unstructured data
  • Customer experience – including automated real-time status reports, proactive and pre-emptive services
  • Dynamic personalisation – insurers can segment customers based on their immediate context, allowing them to cater to preferences in real time

When AI handles these complex, time-consuming tasks, the insurer can then focus on the core work that drives growth, and that delivers the best possible product and experience for the customer.

Benefits of Bionic Underwriting

Bionic underwriting has the potential to bring a range of benefits to customers. These include:

  • Improved customer services – When certain processes are automated, it can eliminate many of the unnecessary or irritating steps on the customer journey, such as submitting documents that the AI can gather automatically. Add to this the dynamic personalization that AI can allow, and customers can get faster access to the cover they need, all while enjoying a much smoother customer journey.
  • Better priced premiums – Because insurers will spend less time on admin and data entry, they’ll have more time to do what they do best – sourcing and securing the best cover for their customers, at the best price. AI can also make for more efficient data insights, making it easier for insurers to respond to customer preferences and market trends, and to price their policies accordingly.
  • Faster and more efficient cover – Customers can benefit from proactive or pre-emptive services, which can automatically notify them of certain risks, including fires and floods. So customers can get help and support from their insurers without even having to reach out. They could even work to secure their property and belongings, which could reduce damages and make claims less likely.
  • Less risk of fraud – Automated data monitoring and proactive or pre-emptive alerts could also benefit insurers. They could be notified of any potentially fraudulent activity as soon as it appears, so they could act before it becomes an issue.

Bionic Underwriting – The Future of Insurance

Janthana Kaenprakhamroy will be discussing bionic underwriting, and its potential, at the 2023 Insurtech Insights Conference.

And head here to find out more about Tapoly’s insurance software solution.