Care West Insurance Company

Carrie Coronado

Underwriting Analytics Leader

Modernizing Underwriting Technology without Diminishing Human Judgment

First, it is important to identify and understand what your firm’s intellectual property is and where its unique value lies. This provides a foundation for modernizing processes without losing the individualized value propositions, which differentiate your organization.

Technology should enhance the underwriter’s ability to evaluate information, improve efficiency, and identify trends, while human judgment remains central to interpreting complex situations and making informed decisions.

The Value of Data, Technology, and Experience in Underwriting Decisions

Technology adds the most value when it enables the quick consumption of objective data and the efficient compilation of subjective information.  Using technology and data improves consistency and focuses an underwriter’s attention on the areas that require deeper evaluation.

Experience should then take the lead in interpreting what that information means for the insurability of a risk and determining the associated cost of that risk. The combination of data and experience creates a more informed and balanced underwriting decision.

Combining Analytics with Human Expertise to Assess Risk

Due to the statutory nature of Workers’ Compensation, it is particularly important that all data elements are carefully validated. In addition to validating the underlying information, the analytics associated with those data elements also need to be reviewed critically.

Analytics can identify patterns and potential areas of concern, but they still require knowledgeable interpretation. A misunderstanding of a response or an overlooked data point could result in an unresolved severity exposure that cannot be adequately priced for and cannot necessarily be excluded from coverage. Human expertise, therefore, remains essential in validating the results and understanding the broader implications of the data.

Emerging Technologies Impacting the Future of Underwriting

I believe video AI, which can review multiple angles and clips rapidly, will have one of the largest impacts on the industries we insure and, consequently, on the future of underwriting. Body mechanics can be reviewed for minor changes in behavior that can be corrected before they lead to serious injuries. Processes can be reviewed for gaps in the chain of manufacturing and improve operational efficiency while reducing the potential for repetitive injuries. As video AI becomes more capable, it can provide insurers with new ways to observe, identify and evaluate risk and mitigation efforts.

This could allow underwriters to respond more quickly to new mitigation techniques while also helping them recognize potential exposures associated with emerging technologies. The ability to understand these developments early will become increasingly important as technology continues to reshape the risks businesses face.

Building Expertise in Technology-Driven Underwriting

Stay informed about technology across multiple industries and disciplines, not just within insurance. An innovation developed for a completely unrelated industry may reveal an opportunity that can be applied to insurance or inspire a new approach to underwriting. As technology evolves, it can also create opportunities to develop new niche segments and specialized areas of expertise.

It has been said many times, but it remains valuable advice: never do something simply because it is the way it has always been done. Be curious, continually learn and look for ways technology can improve the way risks are understood, evaluated and managed.