Transforming Commercial Insurance Underwriting with AI

The underwriting process for commercial insurance carriers has traditionally been time-consuming and labor-intensive, often relying on large teams to review and analyze data from various sources manually. According to the Institute’s survey, the average underwriter spends 40% of their time on administrative tasks, 30% on negotiation and sales support, and 30% on actual underwriting. That is a significant amount of time not quoting profitable new business for your company.  

At Groundspeed, we can eliminate the manual underwriting work with our AI technology. In typically under two hours, your underwriters will have structured, near-perfect, and complete risk data to write profitable new business quickly. In this blog post, we’ll outline the six critical steps in Groundspeed’s AI process that transform the underwriting process for market-leading commercial carriers.

Step 1: Document Ingestion

The largest insurance companies connect and push documents, such as insurance applications, broker emails, loss runs, and exposure schedules to Groundspeed by connecting via API, SFTP, or email.

Our pipeline can ingest unstructured formats, such as:

  • jpg, .bmp, .gif, .png, .pdf, .tif, .tiff, .doc, .docx, .xlsx, .xls, .csv, .xlsb, .xlsm, .xps, .oxps, .eml, .msg, .zip

Step 2: AI Data Labeling

Once documents are ingested, the AI-driven pipeline uses advanced technology to identify, classify, and label the extracted data. Our process can extract and classify relevant information from these documents through Optical Character Recognition (OCR) and Intelligent Document Processing technology. The technologies enable the system to accurately recognize and categorize various types of information, including policyholder details, policy limits, claim history, and more. The AI’s data labeling capabilities not only improve the speed of the underwriting process but also enhance the accuracy of risk assessments.

Step 3: Automated QA

The technology performs automated quality assurance (QA) checks on the extracted and labeled data, ensuring that it meets predefined data point accuracy and completeness standards. During QA checks, both extracted and predicted and calculated fields are validated. By identifying and flagging potential errors or inconsistencies, the system reduces the risk of underwriting decisions based on inaccurate or incomplete information, thereby improving the overall quality of the underwriting process.

During this step, we check captured data by:

  • Running statistically significant audits on critical captured data points daily
  • Evaluating metrics for systemic quality issues daily
  • Documenting and reporting resolutions for issues found
  • Aggregating metrics for customers monthly

Step 4: Human Review

Although the AI technology is highly accurate, Groundspeed understands the importance of near-perfect data for underwriting. As a result, we seamlessly integrate a human review step to review the data flagged as lower-confidence data by the AI. An experienced Groundspeed team member will then confirm the accuracy of the data. This combination of AI technology and human expertise ensures our 98% data point accuracy score across all documents sent to our AI technology.

Having a human review process also gives us unmatched flexibility—we can handle (nearly) anything thrown at us. Submission documents come in many shapes and sizes. Systems that only rely on AI are limited to standardized documents they can confidently automate. 

Step 5: Enrichments

Groundspeed’s AI goes beyond merely automating data extraction and labeling by providing additional data enrichments. We use our proprietary predictive models as well as third-party data to enrich the data set. By leveraging external data sources and advanced analytics, the process helps underwriters better understand each risk and make more informed decisions.

Step 6: Fast Delivery

Once the data has gone through the previous steps, Groundspeed AI rapidly delivers the structured data to the underwriting team in typically under two hours via API, SFTP, or email. Once you receive the data set, you can immediately use it to understand the complete risk picture and win profitable new business. This streamlined process significantly reduces the time spent on manual data entry and review, enabling underwriters to focus on high-value tasks such as writing profitable new business. 

Accelerate Your Commercial Underwriting

Groundspeed’s AI technology is transforming the underwriting process for commercial insurance carriers by automating critical steps of underwriting, improving accuracy, and enhancing decision-making. By leveraging advanced technologies and machine learning, the process enables insurers to streamline their workflows, reduce manual effort, and ultimately make better-informed underwriting decisions. As the industry continues to evolve, Groundspeed’s AI will play a critical role in shaping the future landscape of commercial insurance underwriting.

If you want to see how Groundspeed’s AI could help your underwriters increase efficiency and quote business faster, schedule a call today with a Groundspeed team member.