Commercial Underwriting and GenAI

I was reading the press release of Planck, and it got me thinking. GenAI has promised to improve business efficiency and the article published by Insurance Insights focuses on Underwriters.

In my experience, underwriting want profitable business, streamlined processes, and a consistent clear picture of risks for evaluation.

How should we as an industry evaluate this GenAI technology?

'Imagine having a veteran underwriter sitting beside you, guiding you through the complex world of commercial insurance.?'

A bold claim by Planck Co-Founder and CEO Elad Tsur in this press release and that excites me.

https://www.insurtechinsights.com/planck-launches-first-genai-enhanced-underwriting-workbench-solution

Planck PLUS, an AI-driven risk research and data solution for the commercial insurance sector, is revolutionizing the industry by providing comprehensive queries, suggesting pertinent questions, and offering insights based on a business's digital profile.

Is that what Planck is delivering???

Well, let's start with what the article states

• Operates within a closed data ecosystem, addressing data privacy concerns and reducing errors.
• Empowers insurers to make informed underwriting decisions.
• Platform is intuitive and offers insightful recommendations.
• Helps underwriters navigate vast amounts of data, uncover opportunities, and enable automation.
• Increases written premiums and improves underwriting profitability.

Closed data ecosystem:?This implies that carriers can use their solution without the concern that the carrier's private data will be accessible in the model. It's excellent that Planck as stating this is table stakes for a potential buyer of their system.

Let's dive into the subsequent statements

• Empowers insurers to make informed underwriting decisions.
• Increases written premiums and improves underwriting profitability

Planck has been around since 2018, and I assume these capabilities existed before Planck PLUS. With the updated underwriting workbench, how has Planck PLUS delivered value?

At the end of the article, it states, "Planck PLUS helps underwriters navigate vast amounts of data, uncover opportunities, and enable automations to increase written premiums and improve underwriting profitability."

How exactly? What did Planck PLUS add to their solution that didn't exist before?

Did any of their KPIs improve with the new capabilities? Will this save the underwriters additional time? Are underwriter's better equipped to grow insurance premiums with increased profitability?

"This solution will increase written premium and increase underwriting profitability! "

The importance of Key Performance Indicators (KPIs)

When pitching to a potential buyer for Planck, I would avoid making general claims on improved productivity without citing specifics. If performance can't be measured, it's merely a guess.

Here are some metrics that Planck could publish:

1. Underwriting Efficiency: Measure the time taken to complete underwriting tasks before and after implementing the Planck PLUS system. Look for a decrease in processing time and an increase in policies processed within a given timeframe.
2. Accuracy of Risk Assessment: Evaluate the accuracy of risk assessment by comparing the system's predictions with actual outcomes. Measure the percentage of accurate risk assessments and identify any improvements in reducing errors or discrepancies.
3. Policy Issuance Time: Track the time taken to issue policies from the initial application submission to policy issuance. Aim for a reduction in policy issuance time, indicating faster turnaround for customers.
4. Underwriting Workload: Monitor the workload of underwriters before and after implementing the Planck PLUS. Measure the number of applications or policies handled per underwriter to assess the system's impact on workload distribution.
5. Underwriting Profitability: Analyze the impact of the automation system on underwriting profitability. Measure the ratio of written premiums to losses incurred and track any improvements in profitability.
6. Customer Satisfaction: Gather customer feedback regarding their experience with the underwriting process. Conduct surveys or analyze customer reviews to measure satisfaction levels and identify areas for improvement.
7. Error Rate: Monitor the rate of errors or discrepancies in underwriting decisions. Measure the percentage of incorrect or inconsistent decisions made by the system and aim for reduced?

I am not posing these questions because I am a snarky product manager. I want to know because many companies claim to be unlocking value from their existing products by adding a chat interface and generative AI. Unfortunately, many press releases don't share information on how the chat interface, or GenAI aims to solve a specific problem in the commercial insurance industry.

• The KPIs used to measure the success of the chat interface or GenAI should be clarified. What are the specific business drivers behind their implementation?

To conclude

Planck PLUS claims it is revolutionizing the commercial insurance sector with its AI-driven risk research and data solution. Planck aims to empower insurers, increase written premiums, and improve underwriting profitability by introducing a chat interface and leveraging generative AI.

What are the KPIs? For example: KPIs for evaluating the effectiveness of the Planck PLUS underwriting automation system in commercial insurance. These KPIs could include measuring underwriting efficiency, accuracy of risk assessment, policy issuance time, underwriting workload, underwriting profitability, customer satisfaction, and error rate.

If you are an underwriter, what metrics would you use to evaluate an underwriting work bench?

We eagerly await more information to understand how Plank's chat interface and generative AI added value to their customers.

#Insurtech #AI #CommercialInsurance