AUTOMATED UNDERWRITING The MEM way! Monica Salmons

Why? Cost Savings Capacity Customer Service Cost Savings Capacity Customer Service – expand on turnaround times

Where to Start? Risk Analysis Volume Analysis Contemplating how to minimize the risks

Who to Automate? Premium <$5,000 Governing Class Code Eligible Acceptable Premium <$5,000 Governing Class Code Online Applications Pass the Q&A for the business description E-Mod <1.50 No Schedule Rating Standard Tier Only Pass All Other Screening

Quote Process Agent Enters Submit for Quote Quote Offered Agent Accepts Policy Issuance

Issue Process Agent Enters Submit for Issue Policy Issued

How to Make it Work? Electronic application modifications Screening rules for both eligibility and acceptability Automation of quote creation and quote offer Automation of policy issuance

Application Entry Each governing class code has a score – maintained in a separate database.

Exposure Evaluation Based on the governing class code of the application, a business description drop down is available for the producers to select the bus description that matches their exposure. Many times this is representative of the cross reference categories of the class code. Each bus description has a score and based on the producer’s selection, 0 -3 questions will display. These were based on key pieces of information that we would want an underwriter to know. Something that would potentially change the classification of the exposure or warrant additional information. The producers have no idea if they’ve answere

Exposure Evaluation Based on the governing class code of the application, a business description drop down is available for the producers to select the bus description that matches their exposure. Many times this is representative of the cross reference categories of the class code. Each bus description has a score and based on the producer’s selection, 0 -3 questions will display. These were based on key pieces of information that we would want an underwriter to know. Something that would potentially change the classification of the exposure or warrant additional information. The producers have no idea if they’ve answere

How to Make it Work? Electronic application modifications Screening rules for both eligibility and acceptability Automation of quote creation and quote offer Automation of policy issuance

Post Automation Endorsements Quality Control Screening Notes to Underwriters Post Automation Endorsements Audits Quality Checks System Restraints Application Screening – first line of defense Post Automation Endorsements -endorsements made w/in 60 days of issuance New Business Audits -construction class codes Sample Quality Checks System Restraints – turning off agents

Measuring Opportunity Discuss my cadillac and what we’re able to with it. Eligibility – based on premium and governing class code and a source of internet This is a representation of our automation universe. In this example, during one month we had a chance to automate 535 apps.

Measuring Success

Evaluating the Automated

Digging Deeper

Results Customer Service Savings Capacity Improvement This automated program was implemented without our agents’ knowledge. A few of the display on their application changed slightly but overall they were unaware that we’d begun to automate. They did notice the turnaround time for their quotes and policies.

Questions