Underwriting

Artificial intelligence (AI) has the potential to transform underwriting and risk management, using a series of simple smartphone apps.

Insurers must follow the lead of airlines and retailers and use quote data to fine-tune prices and features based on each customer's situation.

Market cycles are diminishing greatly because sophisticated analytics let insurers price risks individually, not based on market psychology.

The basis of competitive advantage has changed for predictive analytics. Having them used to be an edge, but now you have to do more.

Exciting technologies are delivering automation directly to the underwriter's desk.

With predictive models, many think the sole issue is picking the right technology, but the details of implementation are crucial.

Modern underwriting can best be described with the 5 I’s: Intuitive, Intelligent, Interconnected, Informative and Insightful.

The Towers Watson survey also found a huge spread in the use of predictive modeling -- but still plenty of room to grow.