Underwriting is critical—a necessity and a demand in our industry. Without it, the process simply doesn’t exist.
Yet inefficiencies—manual workflows, slow data access, and human error—create significant challenges. Why does this matter? These obstacles lead to longer turnaround times, higher costs, and inaccurate or missing data, all of which directly impact risk assessment and loss ratios.
AI is moving underwriting forward by automating tasks, enhancing data accuracy, and accelerating decision-making. By processing large volumes of data in real-time (in just 3 minutes with Groundspeed by Insurance Quantified) AI helps underwriters obtain actionable insights about loss and risk, enabling them to make more informed decisions and optimize loss ratios.
The impact of AI is clear: less time spent on manual processes, more accurate data, and quicker, data-driven decisions. But where AI truly shines is its ability to unlock insights that allow underwriters to optimize loss ratios and drive better outcomes.
Let’s explore the specific use cases where AI-powered solutions are making this a reality.
1. Standardizing Loss Summaries for Underwriters
The challenge: Loss runs often arrive in inconsistent formats, such as unstructured PDFs or scanned documents, making it difficult for underwriting teams to extract, benchmark, and analyze the data needed to evaluate an account’s risk profile. This manual process is time-consuming, prone to human error, and ultimately slows down decision-making.
The solution:
- AI-powered tools automate the extraction and standardization of loss runs, pulling key data and transforming unstructured data into structured summaries.
- Aggregate and claim-level views provide immediate visibility into loss trends and individual claims.
- Customizable data extracts surface critical insights faster, allowing for quicker pre-underwriting assessment.
Groundspeed in action: Groundspeed’s AI-powered platform extracts and structures complete data from loss runs, delivering it in an enriched format that makes evaluation sharper and easier for underwriters. This minimizes the time spent digging through large volumes of data to normalize loss profiles and enables underwriters to quickly uncover trends like claim frequency and severity often hidden in PDFs.
2. Empowering Loss Control and Actuarial Teams
The challenge: Loss control teams require precise, claim-level data to assess whether an account is worth underwriting. However, the data they rely on is often scattered across multiple, inconsistent sources, making it difficult to get a clear, actionable picture of risk.
Similarly, actuaries need clean, structured data to build accurate models for pricing and risk assessment; however, manually gathering and structuring this data is time-consuming and error-prone.
The solution:
- Leveraging AI involves normalizing and converting disparate loss runs from multiple sources into structured, standardized formats, enabling easy ingestion into internal models. This automation eliminates manual data processing and significantly reduces the risk of errors.
- AI capabilities allow teams to process large volumes of data in real-time, providing immediate visibility into critical risk trends such as claim frequency, severity, and cost drivers. This accelerates underwriting decisions and enhances pricing accuracy.
- Critical intelligence is delivered through customizable data extracts and predictive fields, which rapidly provide insights. This empowers loss control and actuarial teams to make faster, more informed decisions.
Groundspeed in action: Groundspeed’s custom data extracts and HITL (Human in the Loop) technology enable loss control and actuarial teams to evaluate accounts more efficiently. By processing and structuring data from over eight document types in real time, Groundspeed delivers comprehensive insights in as little as two hours—empowering teams to make faster, data-driven decisions.
3. Automating Additional Loss Summaries for Deeper Insights
The challenge: Carriers often need varying levels of loss run profiling based on the type of coverage (e.g., primary vs. excess coverage). However, managing this process without incurring excessive intake expenses or ingestion costs is a significant pain point. Inconsistent data formats, along with manual extraction and processing, only exacerbate the issue, leading to higher ingestion costs and delays in decision-making.
The solution:
- AI automates data extraction and classification providing the relevant claim-level details and total loss summaries. For example, underwriting teams can deep dive into losses above $1 million for excess coverage, ensuring carriers review only critical information for efficient underwriting.
- AI enables flexible and customizable loss run summaries for both excess and primary underwriting, allowing carriers to focus on the most relevant data for more accurate assessments. By streamlining data extraction and processing, it minimizes ingestion charges, ensuring carriers achieve a high ROI without overburdening their systems.
Groundspeed in action: Groundspeed’s configurable AI tools balance thorough data ingestion with cost management, ensuring carriers get actionable insights without overloading their systems or budgets.
AI’s Transformative Role in Underwriting
AI is a game-changer for underwriting, transforming processes that were once manual, time-consuming, and labor-intensive. By automating routine tasks and improving data accuracy, AI empowers underwriting teams, loss control, and actuaries to make faster, more informed decisions.
Groundspeed is leading the way in delivering AI-driven solutions customizable to each carrier’s needs, unlocking endless possibilities. Whether it’s standardizing loss runs, empowering teams with data at the point of need, or automating nuanced loss summaries, Groundspeed ensures carriers get actionable insights without overloading their systems or budgets.
AI is the future of underwriting, and Groundspeed is here to make that future a reality today. The goal is simple: work smarter and harder than the rest.
Ready to see AI in action? Schedule your loss run demo today and transform your underwriting process
