Missing the forest for the trees? Adapting underwriting intensity to boost insurance property and casualty sales

August 2012
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Missing the forest for the trees? Adapting underwriting intensity to boost insurance property and casualty sales

At a glance

A conventional property and casualty insurance underwriting approach is not as effective as a targeted sales-oriented method for improving submission rates and increasing sales. This FS Viewpoint outlines the steps to achieving a targeted approach and describes "underwriting intensity."

Property & casualty (P&C) commercial lines insurers are recognizing that a conventional approach to underwriting where underwriters spend more time on typical underwriting activities and all submissions are treated the same way is no longer as effective as it once was.

Conversely, in a target state approach, sales-oriented underwriters’ time is spent on relationship and productivity-building activities that support acquisition and positive growth by facilitating decision making and improving service.

The move from the conventional “current state” to the desired “target state” entails a focus on “underwriting intensity" which encompasses an organization level review to help clients improve their underwriting model by:

  • Determining the strategic impact of an underwriting model change
  • Determining the financial impact both quantitatively and qualitatively on all areas of the finance organization
  • Defining and implementing key components of program management such as business portfolio analysis; program governance; project tracking, budgeting, and reporting; staffing and human resources management; and vendor management
  • Helping manage the impact on enterprise risk and regulatory compliance
  • Focusing on key areas such as the human resources organization, compensation structures, training, workforce mobility, and change management
  • Understanding key areas of focus in technology and operations such as target operating models, efficient sourcing models, and infrastructure rationalization




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