Real-time, risk-based underwriting

When Unitrin's Kemper Auto and Home Group rolled out real-time, risk-based underwriting the benefits included improved financial performance, consistent decisions across channels and greater operational efficiency. Kemper found that automating this decision worked smoothly “behind the scenes” to enable consistent, real-time decisions and delivered the efficiency they were looking for. Often, the agent can write the policy while the customer is waiting in his or her office. Not only did this improve customer service it led to increased business with customers signing up more readily thanks to the immediacy of the decision.

A year after implementation, Kemper’s combined ratio dropped by eight points. Along with other technology improvement initiatives, automating underwriting in this way is credited with helping Kemper become a more efficient underwriting organization. The unit also met its
goals for reducing underwriting losses. Kemper continues to see improvements.

Other gains included efficiency and better use of resources. The old system required a hefty percentage of applications to be reviewed by an underwriter. Automation significantly reduced that percentage. Staff can instead focus on book management and agency performance. A full case study is available on Fair Isaac's site.