Leveraging Data to Automate the Renewal Process
August 11, 2023
Ready to embark on your automation journey?
Leverage data to begin automating the renewal process.
In today’s blog post, I delve into new data’s role in automating the renewal process. By leveraging fresh data insights, insurers can unearth previously undisclosed risks, assign the most fitting rate class, and expedite the renewal process through efficient automation. Moreover, insurers gain the ability to gauge the necessary level of manual intervention for each renewal. The result? A more streamlined operation, increased underwriting revenue, and improved communication with brokers and insured parties.
In the past, renewal underwriting relied on factors such as medical specialty, number of doctors covered, and claims history to assess the need for a price increase. However, given the US’s evolving healthcare landscape and legal environment, these traditional measures may no longer accurately predict future losses. That’s why renewal presents an excellent opportunity to incorporate new data. With insurers already having the basic customer information, renewals can be pre-filled and processed more efficiently.
Commercial lines insurers find that automation helps drive top-line growth by making them easier to work with, more forward-looking, and more competitively priced. Data-driven insights empower underwriters to classify providers accurately, assess risk, and pinpoint areas for improvement, resulting in more precise ratings and an unparalleled customer experience. What’s working for commercial lines can work for MPL, too.
Automated does not mean automatic.
The objective is to automate renewals for risks that haven’t changed significantly, e.g., those that won’t merit a significant price increase. Nearly 30% of MPL premiums rose in 2021, so automation efforts must focus on the 70% of policies that have not changed significantly. Automating seven out of ten risks allows limited underwriting resources to focus on three out of ten that merit significant increases.
This 70/30 split sounds straightforward, but the challenge is determining which risks can pass through with little human intervention. That’s where next-generation data comes in.
Minimize manual renewals with the power of new data sources.
Each renewal presents a range of choices that directly impact profitability. These choices span revising rate classes, adjusting pricing, adding terms and conditions, or deciding not to renew altogether. In an ideal world with perfect information, opting for renewal would be straightforward, and the customer would readily comprehend the underwriter’s reasoning. Year by year, your portfolio would grow and become more profitable. However, in the real world, renewal decisions must be made with limited data. Changes in the covered population and claims history are crucial but fail to capture the rapidly evolving realm of medicine and the increasing complexities of litigation.
Preverity data can pinpoint emerging risks and potential future losses. This includes monitoring creeping practice scopes, taking on risky procedures like VBACs in less-than-ideal conditions, and addressing unknown risks as patient care transitions from physicians to midlevel providers.
Bottom line: Each detected risk has the potential to improve patient safety and protect medical professionals acting within their professional capacity. Preverity data shows what’s changed that’s relevant to renewal. It highlights potential renewal issues – and provides an efficient way to focus on your economic interest. We help you find opportunities you might otherwise miss and start the automation journey with quick wins.
- Get ahead of the game and make intelligent renewal choices by looking beyond the usual risk factors.
- Stay up-to-date with industry trends and adapt to the ever-evolving healthcare landscape.
- Boost your profitability and overcome the obstacles that come your way.
Preverity’s powerful analytics and easy dashboard help optimize renewal underwriting without a major overhaul of the processes and technology you use today. This business intelligence helps you find and triage risks. As we work closely with leading healthcare systems and insurers, Preverity data flags potential risks, giving risk managers and underwriters more control over renewal underwriting. It also facilitates risk management discussions with MPL brokers and healthcare risk managers by providing specific action items and rationales for rate actions (and non-renewals).
Preverity allows you to determine if malpractice exposure has changed since initial underwriting. Your underwriting and actuarial team can determine whether to:
- Capture additional rate – or price more competitively.
- Discuss exposures highlighted by the review of granular procedures, and suggest alternatives to reduce these risks.
- Tighten the conditions and exclusions. Some standard provisions may be problematic and merit review in light of new exposure data.
- Revisit self-insured retentions.
Get ready to revolutionize underwriting for medical liability.
Forget about robots and science fiction. We’re introducing cutting-edge information to help identify renewal cases requiring human intervention. With Preverity’s data, MPL insurers can prioritize their underwriting efforts where they truly matter. We’re talking about pinpointing aggressive prescribers of opiates, identifying high-risk emergency department cases, and keeping a close eye on physicians working in the riskier specialties, such as obstetricians. It’s time to take underwriting to the next level with data-driven precision.
The takeaway: Data can uncover risk, potentially enhance patient safety, and safeguard medical professionals. Preverity data reveals what has changed and is important for renewals. It identifies potential renewal concerns and prioritizes your financial interests. We can help you discover overlooked opportunities and kickstart your automation journey.
At Preverity, we have amassed extensive information on medical practice to understand how care delivery is evolving and how it relates to risk. Our advanced analytics enable us to streamline the workflow for malpractice insurance through automation. By accessing detailed information on the specific medical procedures performed by each physician and midlevel provider, MPL insurers can expedite decision-making and enhance accuracy, all while reducing costs.
Stay tuned for my next post, where I’ll explore how data analytics can jumpstart automation for new business.
Gene Boerger, President and Chief Operating Officer
615-982-7076 | email@example.com