CREDIT : IMAGE
INSURANCE esponsible underwriting in insurance involves accurately assessing risks to ensure that premiums are sufficient to cover potential claims while maintaining profitability and fairness . This process is crucial for the financial health of insurance companies and their ability to meet obligations to policyholders .
James Harrison , Global Head of Insurance at Dun & Bradstreet , emphasises the impact of insurtech innovations on underwriting practices . He says : “ Insurtech innovations have transformed underwriting practices in recent years . Some particularly valuable innovations include artificial intelligence and machine learning , which have played a critical role in enabling real-time risk assessment and the automation of decision-making processes . Behavioural analytics are also supremely useful , enabling insurers to collect realtime data on organisational behaviour . For instance , they can analyse cyber risk exposure for banks or companies that hold a lot of sensitive data , monitor shipping data for cargo insurance underwriting , or assess financial risk analysis . By understanding these behaviours , insurers can offer more precise risk assessments , leading to tailored coverage options and potentially lower premiums for businesses demonstrating safer practices .”
Insurtech solutions provide robust data management systems that ensure data is collected , stored and processed in accordance with regulatory requirements , such as GDPR and the Data Protection Act . Harrison adds that the use of data and technology during customer and third-party onboarding , coupled insurtechdigital . com 77