FRISS: focus on the core, not the chore

Technology can help underwriters solve that challenge, but it needs to be applied in a strategic, intelligent way, going hand in hand with optimised underwriting processes. Only then, can insurers begin to understand the “art of the possible” and look to expand their business through choosing the right risks at the right price.

In a session at Underwriting Innovation USA on November 10, 2021, Piyush Singh, co-founder of FRISS, and Justin Krone, vice president of CNA Insurance Company, will be advising attendees on how to make the most of their existing “data gold mine”. They will reveal how to break down barriers that are preventing underwriters from getting the bigger picture, choosing the right risks and better understanding industry-specific business environments.

Singh spoke to Intelligent Insurer ahead of the event about what to expect from the session.

What data sources should underwriters be focusing on? Are there any new sources of data that it’s vital to cover?

The extent of data sources that underwriters should focus on is limitless. They need to capitalise on as much data as they can get their hands on to better understand the risk.

When it comes to internal datasets, if the policy has already been written by the company, then earlier underwriting data and understanding how the risk profile has changed is important—as is the loss history. Comparative or benchmarking data for the risk, based on class of business or geography and risk profile, is also beneficial.

With regard to external datasets (depending on industry class), there are many data sources that underwriters can access. Licensing, inspection, social media, website, industry group and so on provide enriched information related to the risk. These are becoming more vital, in combination with—or even replacing—the more traditional company registration databases.

Underwriters are using company registration, identity, and sanction list data for know your customer checks during onboarding.

What challenges do underwriters have accessing this data and how can they be overcome?

The first challenge is to institutionalise the wide spectrum of datasets that need to be investigated within the company. Underwriters tend to be tribal in nature and everyone has their own background and experiences that drive that behaviour.

When looking at datasets, not all underwriters view them in the same way with the same diligence, and that is a problem. This is exacerbated when it comes to large datasets with unstructured data. Sifting is required to get to the contextual information.

When it comes to small commercial policies, the biggest challenge is finding them across various datasets in a consistent manner. Small commercial setups might have a corporation name, a DBA (doing business as) name, risk location address, corporate address, and business owner’s address.

All datasets do not have the same indexing mechanism and can have spelling errors. As a result, searching manually has its drawbacks. Using automated solutions allows underwriters to overcome these difficulties.

What are the steps needed to onboard the ‘right’ risks?

Once insurers have identified the proper industry class they are interested in, it is worth working with a vendor to understand the “art of what is possible”. This is beneficial as it helps them to better understand the risk and choose the right risks to fit their appetite, based on the breadth and depth of information that is accessible.

What tools will the underwriter of the future have, and how will they augment their human talent?

We have a simple philosophy at FRISS when it comes to supporting the underwriting community: we do the chore and let them focus on the core. Underwriting talent is all about choosing the right risk based on the information available. We institutionalise and streamline information collection on the risk so that it is presented in a concise, consistent, and user-friendly manner.

In addition, the information has been sifted in a way that defines their company-specific appetite and underwriting criteria. This allows the team to focus on their core function: underwriting.

That, in turn, enhances the “human unique selling point”, generating a better understanding of the business environment, risk-related attributes and insights when it comes to specific industry classes.

Commercial insurance is being disrupted. This is a great opportunity to move away from the silo approach to fixing something in claims or underwriting. Tools can help remove silos and foster greater insight and cooperation across functions.

It’s more important than ever to start thinking about how we remove those silos. If insurers look to innovate without considering the synergies that can release across their functions, they will be missing a very large trick. If we can get this right, we can improve value across the value chain—not just for the insurer, but through them to the broker and the customer.

Piyush Singh, co-founder of FRISS, and Justin Krone, vice president of CNA Insurance Company, will be advising attendees on how to make the most of their existing “data gold mine” during a session at Underwriting Innovation USA on November 10, 2021 at 12:35 pm EST.

This is the biggest online event tailored specifically to underwriting—don’t miss out. Register now!