Savings Premium: What It Is and Why It Matters
Whether evaluating individual life applications or large groups of individuals for group health, home, or auto insurance, insurers carefully scrutinize each application before offering a policy. Insurers look at the applicants’ medical and financial history, the assets they want to cover, the coverage limits, and other factors. Depending on the insurer and the type of policy, underwriters can approve or deny the application or recommend a specific coverage limit and premium. As underwriting processes evolve with changing industry dynamics, insurers face new challenges in assessing applicant risk. For example, the growth of adventure tourism, gig economy jobs, and drone businesses present new risk profiles that traditional underwriting guidelines were not designed to handle. In addition, regulatory and customer demands for faster decisions and more transparency increase the need to manage ever-growing data volumes. To address these complexities, modern underwriting solutions leverage ...