How Automation removes human errors and boosts accuracy in Underwriting
It feels like automation is having a moment, doesn’t it?
Everyone’s talking about it. Every product claims to have it. And every team is trying to figure out what it means for their workflow.
Some industries have jumped in headfirst. Others, like underwriting are cautiously testing the waters. And we get it. Underwriting is complex. There are rules, exceptions to the rules, and then client-specific exceptions to those exceptions.
So the idea of handing things over to automation can feel… risky. Like, can it really handle everything?
But here’s what we’ve learned watching this play out up close: When done right, automation doesn’t just make things faster, it makes them better. And in underwriting, that means fewer errors, more accurate outputs, and a whole lot less second-guessing.
Why is Underwriting Prone to Human Errors?
Here’s something we’ve noticed: when people talk about fixing underwriting workflows, the conversation almost always starts with speed. Faster quotes, faster proposals, faster everything. And sure, moving quicker helps. But if we’re being honest? That’s not usually where things fall apart.
Here are some challenges that we are talking about:
High Mental Load: Underwriters constantly switch between numerous documents, spreadsheets, emails, and templates, while simultaneously retaining complex client details and requirements. This juggling act significantly increases the cognitive burden and the likelihood of oversight.
Manual Data Management: The reliance on manual data extraction and entry from various sources (carrier documents, proposals, internal systems) is time-consuming and a major source of transcription errors, missed information, or the use of outdated data.
Complex and Evolving Rules: Underwriting involves a vast and intricate web of rules, exceptions to those rules, and client-specific exceptions. Keeping track of and consistently applying all these regulations without error is a significant challenge.
Inconsistent Application of Criteria: Due to human variability and the sheer volume of information, there’s a risk of inconsistent application of underwriting criteria, leading to variations in recommendations or overlooked details across different cases.
Difficulty in Maintaining Accuracy: The manual process of connecting disparate pieces of information makes it inherently difficult to maintain consistent accuracy. Small errors, like an outdated rate or an overlooked client requirement, can easily slip through and accumulate over time.
Time-Consuming Error Correction: When errors occur, even minor ones, they can lead to hours of investigation and correction. This not only wastes valuable time but also contributes to underwriter fatigue and frustration.
Struggle with Personalization: Without automation, achieving highly personalized recommendations for each client based on their unique needs becomes a guessing game or leads to generic, “one-size-fits-all” approaches.
So straightaway, speed isn’t the enemy here. The real challenge is building a workflow where accuracy isn’t so hard to maintain. Where people don’t have to carry the whole process in their heads. That’s where things start to get better, not just faster.
How does Automation fix these Issues?
We knew there had to be a better way, and that’s where automation comes in. Let’s walk through how automation can completely transform underwriting processes:
Instant and Accurate Data Extraction
Manual data extraction is time-consuming and error-prone. Underwriters are often left flipping through documents, searching for relevant data, and entering it manually into spreadsheets.
Automation takes over this process, instantly extracting data from multiple sources and ensuring that everything is accurate and up to date, without human error. This allows underwriters to focus on decision-making instead of chasing data.
Tailored, Error-Free Recommendations
Every client has different needs, and underwriting should reflect that. With traditional methods, underwriters are often left guessing or applying one-size-fits-all recommendations.
Automation allows for personalized recommendations based on client-specific data, eliminating guesswork and ensuring that each recommendation is precise and relevant to the client’s unique situation. No more inconsistencies or missed details.
Real-Time Decision-Making for Faster Results
In underwriting, speed matters, but it shouldn’t come at the cost of accuracy. Automation speeds up decision-making by providing real-time insights and analyzing data according to predefined criteria. This means that underwriters can make quick, well-informed decisions without the long delays and errors.
Why This Matters:
In underwriting, accuracy is everything. Even small mistakes—whether it’s a missed calculation, incorrect data, or an overlooked requirement—can lead to serious consequences. Automation addresses this by removing the risk of human error, ensuring that tasks are done accurately, the first time.
By automating processes like data extraction and real-time decision-making, you get faster, more accurate results and minimize errors that can cost time and money. Automation empowers your team with consistent, up-to-date data, enabling quicker and more reliable decisions.
Automation doesn’t just speed up underwriting — it makes it more accurate, efficient, and less prone to errors. The future of underwriting is smarter, not harder.