Virtual Viewpoint: Money-saving Solutions

As we know, investing in a technology alone will not save money–it is the appropriate application of that technology that makes it valuable as a cost saver. For example, intelligent rules-based workflow will help cut costs in the underwriting process, but this requires fine-tuning so administrative time and associated costs are significantly reduced and underwriters are allowed to refocus the majority of their time on actual underwriting and spending quality time with agents/brokers.

Labor accounts for nearly a third of an insurer's total cost, so in this context, applications of technology that reduce this cost factor will have maximum impact. This points to three areas of application: instrumentation, automation, and reduced consumption. Instrumentation monitors key processes and captures critical information to provide timely alerts and ultimately reduce direct and indirect costs incurred to fix "breaks" as well as free up labor assigned to keep a constant watch on critical processes. Automation optimizes people talent and realigns skill sets to complex, high-value, judgment-related tasks while reducing or altogether eliminating simpler, repetitive tasks through better processes and technology. Reduced consumption reduces the heavy costs an insurer incurs both on client servicing, by enabling agent and customer self-service capabilities, as well as on printing, by incorporating e-doc/e-signature technologies that minimize the use of paper.