AI-Powered Pega Platform Streamlines Motor Insurance Underwriting

Challenges

The client faced inefficiencies in traditional underwriting:

• Slow Time-to-Market: Lengthy development cycles hampered the introduction of new products.
• Limited Configurability: Static product features and pricing hindered quick product updates.
• Inaccurate Quotes: Manual calculations and static rules led to irrelevant offers.
• Manual Processes: Time-consuming task assignments and underwriting referrals slowed down operations.
• Unintuitive Interface: A complex user interface for end-users created friction.

Solution

Coforge implemented a decision-based Policy Underwriting solution powered by the Pega Platform coupled with pega analytics/decisioning engine to enable end-to-end digital underwriting process flow specifically for motor lines of Insurance.

The process lifecycle, data fields, document templates are all designed to take care of quote generation and policy issuance for motor line of insurance.

Features: Applying AI-based decision models to generate the most suitable quote for a customer

• Incorporate Underwriter decision feedback loop into the predictive model
• Customer risk data and risk table-driven Base premium calculation fetched through integration with PAS
• Pega predictive and adaptive modeling to select campaigns, and offers applicable to each customer which is applied to base premium to calculate the final premium
• Providing a holistic risk assessment of the act to aid better business decisions
• Identify the key predictors that are impacting the Underwriter’s decision making
• Built an analytical model to provide actionable insights to Underwriter

Benefits: Significant benefits contribute to the reduction of claim processing expenses and minimization of the claims outflow

• Increased channel satisfaction by expediting underwriting decisions- immediate response to channel needs by automating risk appetite, pricing and coverage determinations. Consistently guide underwriters and producers to the optimal outcome in accordance with underwriting guidelines.
• Accelerated quote turnaround- Speed underwriting reviews by simplifying task assignments, approvals, and work orchestration across systems. Eliminate manual workarounds and deliver a cohesive underwriter experience across operations.
• Increase the tempo of change by empowering the business to control and improve underwriting processes- Reduce time-to-market with embedded product configuration, underwriting rules, and decisioning support.
• Reduced processing time for quote generation- Automated referral and AI/ML enabled data extraction capabilities

The Impact

End state savings of more than 75%, that includes process, design, automation, right shoring and business model change. This translates to significant improvements across various aspects of claims processing:

• Faster Time-to-MarketReduced product development cycles for quicker product introductions.
• Increased Channel Satisfaction Faster underwriting decisions improved customer and partner experience.
• Accelerated Quote Turnaroun Automated processes led to quicker generation of accurate quotes.
• Reduced Processing Time Automated data extraction and approvals significantly reduced processing times