Conjuring Up an Enhanced Underwriting Infrastructure for the Insurance Industry

Human beings are known for a myriad of different things, but more importantly than the rest, they are known for getting better on a consistent basis. This progressive approach, on our part, has already got the world to hit upon some huge milestones, with technology appearing as a major member of the stated group. The reason why technology enjoys such an esteemed stature is, by and large, predicated upon its skill-set, which ushered us towards a reality that nobody could have ever imagined otherwise. Nevertheless, if we look up close for a second, it will become clear how the whole runner was also very much inspired from the way we applied those skills across a real world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, and consequentially, kickstarted a tech revolution. Of course, this revolution then went on to scale up the human experience through some outright unique avenues, but even after achieving such a monumental feat, technology will somehow continue to produce the right goods. The same has grown increasingly evident over the recent past, and assuming one new insurtech-themed development shakes out just like we envision, it will only make that trend bigger and better moving forward.

Federato, RiskOps platform for P&C and Specialty insurance, has officially announced a partnership with Google Cloud to embed several new AI capabilities into its RiskOps Underwriting Platform. According to certain reports, these enhancements will also be made available on Google Marketplace through a click-to-deploy functionality. But what are these capabilities and how will they deliver on their promised value proposition? Well, we begin from a brand-new portfolio optimization capability, which ranks thousands of risks relative to the portfolio using a businesses’ existing rate, retention, accumulation, business goals, guidelines, and other related parameters. Next up, there is the prospect of appetite assessment. The idea with this one is to combine rules and client-proprietary algorithms before making an accurate assessment of their appetite and referral requirements. By taking that information into account, Federato’s platform will now able to facilitate auto-declination or straight through processing. Talk about analyzing data to understand where exactly an organization stands, a similar approach will be in practice when the agenda is to conceive winnability estimation. You see, by unlocking an uninterrupted access to hundreds of unique market data points, the platform will help underwriters concentrate and prioritize opportunities that are most advantageous to them. Moving on, we now must acknowledge the introduction of underwriting guidance support, which translates to scanning scores of guidelines in the context of an account before separating the questions an underwriter should ask from the ones they could actually ask.

“Federato has always stood out in the startup community for solving some of the insurance industry’s most complex challenges,” said Nigel Walsh, Managing Director of Insurance for Google Cloud. “By embedding Google Cloud’s advanced AI capabilities in its risk operations solutions, Federato can help assist insurers in creating a more efficient underwriting process.”

Hold on, we still have a couple of bits left to unpack, considering we haven’t touched on how an expanded collaboration between Federato and Google Cloud will further make a point to bring similarity analytics. Basically, the former’s platform will now have the necessary means to club together thousands of accounts based on a wide-ranging but somewhat common characteristics, and therefore, allow underwriters to review and learn from their peers’ analysis of similar risks. Rounding up the highlights is an option to train, host, deploy, or connect with customized models ranging from natural catastrophe to telematics. In case that wasn’t impressive enough, then it might be worth our whole to mention how users can conduct this entire process inside the platform’s original ecosystem itself.

“When people think of AI in insurance, they tend to think of automation or risk scores,” said Will Ross, CEO & Co-founder of Federato. “What we are hearing from customers is that such offerings are, at best, codifying average underwriting performance and, at worst, oversimplifying underwriting instead of empowering underwriters with solutions they can rely on. We see a real need for AI to be a trusted guide that can elevate thinking and tap into the human creativity and knowledge that helps underwriters out-perform.”