The Crucial Role of Data Transfer Speed in Delegated Authority
Written at Jul 31, 2023 2:26:22 PM by Ksenia Gorska
The concept of delegated authority within insurance industry has gained significant traction as a means to streamline operations and improve efficiency. However, amidst this delegation of authority lies a critical factor that can make or break the success of this arrangement: the data visibility and the speed of data transfer.
Insurance is no longer a stranger to change. Over the recent few years, it has adapted to new technologies and innovations to improve efficiency, accuracy, and customer experiences. The word ‘AI’ pops-up at every single strategic meeting or conference that I have been to this year, but everyone seems to focus on the front-end (client facing) processes and very little is said about the back-end processes, that are not visible to client.
Data transfer speed plays a pivotal role in expediting the underwriting process. Swift data transfer allows for seamless communication between the insurer and the delegated authority, ensuring quick access to relevant information such as risk assessments, policy details, and claims history.
Rapid data transmission accelerates decision-making, enabling timely policy approvals or rejections. This speed ensures a competitive edge by reducing turnaround times, minimising the potential for underwriting losses and enhancing operational efficiency. Timely and accurate data transfer ultimately leads to improved risk management and profitability for insurance companies.
Fast data transfer is crucial for delivering an exceptional customer experience. When customers interact with brokers or agents, efficient data transfer ensures quick response times, seamless policy issuance, and prompt claims handling.
After all, even if you invest millions in the image recognition tools in order to speed up the claims assessment, if your team cannot quickly access whether the policy had been written in the first place and check whether the premium had been paid, this delay in data transfer will lead to customer frustration and hampering of their overall experience.
As technology continues to advance, I believe that insurance companies must prioritize fast data transfer, investing in robust communication infrastructures and systems that support seamless information exchange. By doing so, insurers can fully leverage the benefits of delegated authority, improve operational effectiveness, manage risks effectively, and provide unparalleled service to their policyholders.
Senior Business Data Architect