Boston, MA, USA
November 22,
2002
The Evolution of Rule-Based Life Insurance
Underwriting Systems
Report Published by Celent
Recent shifts in technology give carriers a
reason to re-evaluate rule-based processing and its ability to deliver
value in life insurance underwriting.
Although the quest to reduce life insurance
underwriting costs and cycle times using rule-based processing is not new,
shifts in available technologies are reinvigorating it. By
implementing a next-generation new business process, Celent estimates a
typical carrier that issues 40,000 policies a year could save more than
US$1.3 million annually.
"Rule-based processing definitely has a place
in life underwriting," says
analyst Craig Weber,
author of Celent's latest report, The Evolution of Rule-Based Life
Insurance Underwriting Systems. "But carriers need to create
next-generation systems if they want a good return on investment. That
means tight integration, component-based architecture, and high levels of
automation and control over data, plus the ability to deliver rule-based
intelligence all the way back to the point of sale."
"A lot of carriers have some of the pieces in
place," Weber adds. "But very few have put them all
together."
The report suggests that an emphasis on using rules
engines to power underwriting decisions may be misplaced, particularly for
carriers writing high face amount business at lower volumes. Components of
the new business process that deliver quick ROI and allow for greater
distribution channel flexibility include electronic applications,
automated requirements management, and alternative data collection and
underwriting.
The report includes two case studies that illustrate
key concepts.
A Table
of Contents is available online.
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