NA Commercial Insurance
Underwriting Survey
Job Title: Company’s 2012 Net Premiums
Written (USD):
Primary area of focus:
Survey Sample
• Quantitative survey among insurance and reinsurance underwriters in the US
and Canada.
• 559 individuals completed the survey
• Broad range of underwriting roles
28%
29%
33%
10%
Senior Underwriter Underwriter
21%
24%
29%
26%
68%
23%
9%
Commercial lines Specialty lines
Reinsurance
Source: NA Commercial Insurance Underwriting Survey
USD $500 million
– USD $1 billion
USD $1 – Greater
than USD $5 billion
Department/
Product manager
Other underwriting
executive
Copyright © 2013 Accenture All rights reserved. 2
Less than
USD $100 million
USD $100
– $500 million
Key finding #1
Insurance companies are currently
investing and planning to invest in
underwriting over the next 3 years.
Copyright © 2013 Accenture All rights reserved. 3
Source: NA Commercial Insurance Underwriting Survey
12% 11% 9% 10%
26% 29% 34% 33%
62% 60% 57% 57%
Data & analytics Underwriting
(incl. pricing)
Distribution
management (e.g. management of your
sales and distribution
channels including agents,
brokers, Managing
Agents, Alliances, etc.)
Product and policy
administration
4
Underwriting is a major area of investment for organizations in
the next 3 years
Where is your company currently investing or planning to invest over the next
3 years?
Copyright © 2013 Accenture All rights reserved.
Not a priority
Planned in next 3 years
Currently investing
Source: NA Commercial Insurance Underwriting Survey
5
Companies with more than $1billion in annual revenue are investing
more in data and analytics when compared to other organizations
Where is your company currently investing or planning to invest over the next
3 years?
Copyright © 2013 Accenture All rights reserved.
Currently investing: Annual income
Data & analytics Underwriting
(incl. pricing)
Product and policy
administration
USD $500 million
– USD $1 billion
USD $1 – Greater
than USD $5 billion
USD $100 – $500 million
Less than USD $100 million
Distribution
management (e.g. management of your
sales and distribution
channels including agents,
brokers, Managing
Agents, Alliances, etc.)
44%
57% 60%
56%
47%
57%
52%
64%
60%
69%
58%
48%
66% 69%
60%
73%
Source: NA Commercial Insurance Underwriting Survey
58%
54% 52% 52%
Customer intimacy/
centricity
Cost reduction/
operating efficiency
Speed to market
6
Speed to market is an important factor driving investment in
underwriting capabilities
How important are the following factors in driving your company’s investment in
underwriting capabilities?
Copyright © 2013 Accenture All rights reserved.
Very important
Ease of
doing business
Source: NA Commercial Insurance Underwriting Survey
1 month
3 months
6 months
12 months
18+ months
7
However, 72% of respondents believe it takes their organization
6 months or more to launch a major new product
How long does it take your organization to launch a major new product; from idea
to roll-out?
Copyright © 2013 Accenture All rights reserved.
5%
23%
16%
32%
24%
Source: NA Commercial Insurance Underwriting Survey
20%
28%
33%
33%
40%
47%
5%
17%
16%
50%
8
Pricing and risk evaluation are priority areas of investment
In which underwriting areas is your company planning to invest over the next
3 years?
Copyright © 2013 Accenture All rights reserved.
Pricing
Risk Evaluation
Process/Work Management
Document Management
Appetite/Eligibility Determination
Loss Control Inspections
Book Mix Management
Exposure Concentration Management
Portfolio Underwriting
None of the above
Select top 3
Source: NA Commercial Insurance Underwriting Survey
Increased use of process automation
Increased use of Predictive Models
for risk evaluation and pricing
Increased use of external data to
evaluate risks
Improved collaboration tools for team
underwriting and broker interaction
Centralization of its underwriting
groups
Offshoring of some underwriting
functions
None of the above
No investment planned
14%
33%
49%
51%
51%
57%
1%
1%
9
Process automation, analytics and collaboration tools are the
primary areas being improved
Where will your company invest in the next 3 years, to improve the effectiveness
of its underwriting organization?
Copyright © 2013 Accenture All rights reserved.
Select all that apply
Key Finding #2
Maintaining underwriting/pricing
discipline, and controlling operating costs
and are among the top issues facing
underwriters.
Copyright © 2013 Accenture All rights reserved. 10
Source: NA Commercial Insurance Underwriting Survey
Maintaining underwriting and pricing
discipline
High operating costs/expenses
Lack of quality underwriting
information
Recruiting or retaining talent
Outdated/inflexible systems
Lack of management information and
reports to analyze the business
55%
72%
47%
43%
43%
33%
11
Pricing and operating expenses are major challenges impacting
the company’s ability to achieve their business objectives
What are the main challenges within your underwriting function that impact your
ability to achieve your business objectives?
Copyright © 2013 Accenture All rights reserved.
Selected within top 3 choices
Source: NA Commercial Insurance Underwriting Survey
Maintaining underwriting and pricing
discipline
High operating costs/expenses
Lack of quality underwriting
information
Recruiting or retaining talent
Outdated/inflexible systems
Lack of management information and
reports to analyze the business
30%
43%
43%
45%
55%
76%
64%
63%
54%
61%
51%
50%
45%
41%
42%
39%
35%
43%
12
Underwriting pricing is a challenge to commercial lines carriers,
while operating costs are more of a challenge to reinsurers
What are the main challenges within your underwriting function that impact your
ability to achieve your business objectives?
Copyright © 2013 Accenture All rights reserved.
Selected within top 3 choices Lines of insurance
Reinsurance
Specialty lines
Commercial lines
Source: NA Commercial Insurance Underwriting Survey
Planned in next 3 years
17%
17%
11%
18%
11%
17%
38%
38%
29%
30%
31%
21%
37%
33%
44%
32%
31%
29% 67%
80%
84%
88%
73%
92%
13
Organizations are actively working towards reducing expenses,
especially through automation and integration with agencies/brokerages
What activities are planned within your underwriting division to reduce
underwriting and operational expense?
Copyright © 2013 Accenture All rights reserved.
Being Implemented
Already Implemented
Increased use of automation
Increased integration with
agencies/brokers
Creating a core underwriting function
Other changes to the operating model
Outsourcing certain tasks
Other Technology investments
Source: NA Commercial Insurance Underwriting Survey
No Automation 18% 8%
13% 19%
23% 27%
19%
14%
17%
23% 21%
20%
20%
17%
21%
23% 21% 20%
22%
23%
31%
19% 21% 14%
21%
38%
18% 16% 14% 19%
Specialty $50000 in
premium+
$10000-
50000
premium
20%
19%
Up to
$10000
premium
Overall Reinsurance
14
57% of organizations have automated 50% or less of their
underwriting processes
For the following premium segments, what percentage of the underwriting
process is automated?
Copyright © 2013 Accenture All rights reserved.
At least 50%
Below 50%
At least 70%
90% of more
Key finding #3
The quality of underwriting tools has
improved and training has become even
more important.
Copyright © 2013 Accenture All rights reserved. 15
Source: NA Commercial Insurance Underwriting Survey
2013 2008
Underwriting strategy
Frontline underwriting
practices
Pricing strategy
Accessible & intuitive
tools & systems to
support underwriting
Technical training
programs
Non-technical
training programs
Underwriting strategy
Frontline underwriting
practices
Pricing strategy
Accessible & intuitive
tools & systems to
support underwriting
Technical training
programs
Non-technical
training programs
4%
7%
8%
17%
17%
18%
26%
30%
31%
28%
31%
33%
70%
63%
61%
55%
52%
49%
16
Underwriting processes and tools have improved, as have
training programs
How would you rate the current quality of the underwriting processes and tools
within your underwriting division?
Copyright © 2013 Accenture All rights reserved.
Average (3) Deficient (1,2) Superior (4,5)
Base size: All respondents (n=559) Base size: All respondents (n=115)
6%
7%
12%
28%
25%
32%
26%
25%
36%
38%
39%
34%
67%
68%
52%
34%
37%
34%
Source: NA Commercial Insurance Underwriting Survey
17
Investment in technology and training are both crucial to
improving underwriting results
When considering how to improve the quality of your organization’s underwriting,
how would you rate the importance of each of the following areas?
Copyright © 2013 Accenture All rights reserved.
45%
45%
44%
46%
42%
47%
48%
51%
46%
44%
48%
48%
48%
45%
49%
40%
38%
34%
37%
37% 81%
93%
92%
93%
83%
85%
86%
87%
91%
91%
Top 2 boxes = Very Important + Important
Investments in underwriting
technology
Underwriter training
Market research
Risk selection
Risk pricing
Risk appetite
Predictive models
Aggregation of client and policy data
for analytic purposes
Underwriter controls
Identification of fraud indicators
Important
Very important
Source: NA Commercial Insurance Underwriting Survey
Management (Department/Product manager + Other
Executive)
Underwriting (Underwriter + Senior Underwriter)
18
Underwriters and management generally agree on how to
improve underwriting quality
When considering how to improve the quality of your organization’s underwriting,
how would you rate the importance of each of the following areas?
Copyright © 2013 Accenture All rights reserved.
92%
93%
92%
93%
92%
86%
87%
80%
82%
88%
83%
84%
85%
84%
85%
90%
90%
92%
92%
93%
Top 2 boxes = Very Important + Important
Investments in underwriting technology
Underwriter training
Market research
Risk selection
Risk pricing
Risk appetite
Predictive models
Aggregation of client and policy data for
analytic purposes
Underwriter controls
Identification of fraud indicators
45%
45%
45%
47%
43%
49%
51%
50%
47%
44%
47%
49%
48%
45%
48%
39%
36%
35%
36%
36%
45%
46%
43%
44%
40%
45%
45%
52%
46%
45%
49%
46%
50%
46%
50%
40%
39%
33%
38%
38%
Important Very important
Key finding #4
Underwriting technology has improved
organizational performance, but
integration is a serious issue for most
companies.
19 Copyright © 2013 Accenture All rights reserved.
Source: NA Commercial Insurance Underwriting Survey
Product development tools
Collaboration tools and technologies
Mobile (Wireless) technology for customers
Geo-coding or mapping tools to manage exposures Automated underwriting decisions (no touch underwriting)
Underwriting workstation
Telematics
Mobile (Wireless) technology for agents
Mobile (Wireless) technology for underwriters
Use of social networking or crowd
Web quoting facility for agents/brokers
Policy administration
Web Inquiry for agents/brokers
Cross sell/lead management
Agent/broker download
Agent/broker upload
12%
14%
23%
15%
20%
13%
24%
23%
21%
19%
12%
7%
11%
14%
9%
13%
20
One in two organizations are implementing, or will soon implement,
product development tools, collaboration tools and telematics
Within your underwriting division, what is the status of the following technologies?
Copyright © 2013 Accenture All rights reserved.
21%
21%
21%
19%
19%
19%
19%
18%
17%
17%
16%
14%
14%
14%
12%
10%
36%
31%
27%
31%
27%
31%
35%
30%
27%
30%
26%
30%
27%
31%
31%
22%
31%
34%
29%
35%
34%
37%
22%
29%
35%
34%
46%
49%
48%
41%
48%
55%
No Activity Planned in next 3 years Being Implemented Already Implemented
Source: NA Commercial Insurance Underwriting Survey
21
Most companies are implementing, or will soon implement, geo risk
concentration, underwriting support and exposure management tools
What management information and analytic technologies is your organization
currently implementing or planning to?
Copyright © 2013 Accenture All rights reserved.
2%
4%
7%
8%
8%
9%
8%
11%
11%
12%
10%
11%
17%
17%
15%
16%
17%
14%
11%
18%
34%
26%
32%
31%
28%
32%
32%
29%
35%
32%
53%
60%
44%
43%
50%
42%
43%
46%
44%
38%
Management reporting
Operational reporting
Book/portfolio management
UW support
Pricing analysis and management
Exposure management
Risk selection/tiering
Submission routing
Cross selling
Geo risk concentration
No Activity Planned in next 3 years Being Implemented Already Implemented
Source: NA Commercial Insurance Underwriting Survey
Agent/broker upload
Policy administration
Web Inquiry for agents/brokers
Agent/broker download
Web quoting facility for agents/brokers
Cross sell/lead management
Underwriting workstation
Geo-coding or mapping tools to manage exposures
Mobile (Wireless) technology for underwriters
Collaboration tools and technologies
Use of social networking or crowd sourcing for risk information
Automated underwriting decisions
Product development tools
Mobile (Wireless) technology for agents
Mobile (Wireless) technology for customers
Telematics
22
Only half of underwriters feel that the technology used within
their underwriting division is very effective
How effective are the current technologies within your underwriting division?
Copyright © 2013 Accenture All rights reserved.
Respondents
(n=276)
(n=237)
(n=229)
(n=234)
(n=228)
(n=199)
(n=184)
(n=162)
(n=168)
(n=172)
(n=163)
(n=167)
(n=151)
(n=144)
(n=136)
(n=94)
55%
49%
48%
48%
46%
41%
37%
35%
35%
34%
34%
34%
31%
29%
29%
22%
65%
49%
45%
50%
46%
40%
54%
48%
52%
52%
55%
50%
51%
50%
49%
49%
Already Implemented Very effective
Source: NA Commercial Insurance Underwriting Survey
Agent/broker upload
Policy administration
Web Inquiry for agents/brokers
Agent/broker download
Web quoting facility for agents/brokers
Cross sell/lead management
Underwriting workstation
Geo-coding or mapping tools to manage exposures
Mobile (Wireless) technology for underwriters
Collaboration tools and technologies
Use of social networking or crowd sourcing for risk information
Automated underwriting decisions
Product development tools
Mobile (Wireless) technology for agents
Mobile (Wireless) technology for customers
Telematics
50%
48%
50%
43%
46%
42%
35%
33%
35%
36%
34%
31%
31%
30%
30%
20%
64%
44%
38%
46%
38%
38%
54%
45%
54%
47%
54%
46%
45%
47%
45%
44%
61%
50%
45%
53%
46%
40%
40%
39%
35%
33%
33%
37%
30%
28%
27%
25%
66%
56%
55%
55%
56%
43%
53%
51%
50%
58%
56%
55%
59%
54%
53%
53%
23
Managers are more likely to think their current technologies are
more effective than front-line underwriters
How effective are the current technologies within your underwriting division?
Copyright © 2013 Accenture All rights reserved.
Already Implemented Already Implemented
Underwriting (Underwriter + Senior Underwriter)
Management (Department/Product manager + Other Executive)
Source: NA Commercial Insurance Underwriting Survey
24
Insurers feel that their ability to drive profitability has been
improved through the use of underwriting technology
How has underwriting technology improved your underwriting performance?
Copyright © 2013 Accenture All rights reserved.
5%
10%
10%
9%
12%
12%
23%
21%
23%
25%
25%
31%
72%
69%
67%
66%
63%
57%
Increased your ability to drive
account profitability
Automated simple tasks
Increased your ability to work
with agents
Increased your ability to work with
raters and assistants
Increased your ability to
cross-sell accounts
Increased your ability to obtain higher
authority levels
Not at all (1,2)
Average (3)
Very much (4,5)
Source: NA Commercial Insurance Underwriting Survey
16%
...Decreased workload
...No change
...Increased workload
30%
54%
Base size: All respondents (n=559)
25
Most underwriters feel that technology has actually increased
their workload
Overall technology has…
Copyright © 2013 Accenture All rights reserved.
2013 2008
30%
34%
...No change
...Decreased workload
...Increased workload
36%
Base size: All respondents (n=115)
Increase of 20
basis points
since 2008
Source: NA Commercial Insurance Underwriting Survey
26
Underwriters have seen their workload increase more than that
of management
Overall technology has…
Copyright © 2013 Accenture All rights reserved.
Insurance Title
17%
15%
...No change
52%
Management
(Department/Product
manager + Other Executive
33% ...Decreased workload 27%
...Increased workload
Underwriting
(Underwriter +
Senior Underwriter)
56%
Source: NA Commercial Insurance Underwriting Survey
27
Speciality Lines have seen the highest increase in workload
Overall technology has…
Copyright © 2013 Accenture All rights reserved.
Lines of insurance
17%
14%
12% ...No change
62%
Specialty lines
24% ...Decreased workload
37% 31%
...Increased workload
Commercial lines
51%
Reinsurance
52%
Source: NA Commercial Insurance Underwriting Survey
2013 2008
System is not intuitive, not easy to use
System Performance Issues
Insufficient Training
Lack of Process Integration
Lack of Data Integration 81%
67%
56%
48%
48%
Base size: Respondents who indicated
workload increased through technology (n=305)
28
Data and process integration are the main causes of increased
workloads, along with insufficient training
Please rank from 1 – 5 the reasons why technology has increased your workload
Copyright © 2013 Accenture All rights reserved.
Selected within top 3 choices
System is not intuitive, not easy to use
System Performance Issues
Insufficient Training
Lack of Process Integration
Lack of Data Integration 72%
81%
38%
53%
55%
Base size: Respondents who indicated
workload increased through technology (n=47)
Selected within top 3 choices
For more details on North America
Commercial Insurance Underwriting
Survey, visit:
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