New Business and Underwriting Systems: North America Life Insurance Edition

The pandemic forced life insurers to rethink their process and products, all while managing their mortality, financial, and operations risk. The lockdown forced sales to be online, over the phone, or any other method that didn’t require face-to-face contact. In addition, there was a move toward “fluidless” underwriting processes, with most insurers offering a product that can be sold in an accelerated manner. Now a majority of insurers embrace data-driven, automated underwriting for an expanded portfolio of products beyond simplified products. The integration of electronic application systems to back-end automated underwriting systems has allowed for some companies to offer instant decisioning for more than just low faced term products.

Implementing technology that automates new business and underwriting functions helps insurers digitize their new business and underwriting, reduce unit costs, and improve margins. Automated underwriting processes significantly improve the client experience because they enable a faster, digital purchase experience—an expectation that grew exponentially during the pandemic.

Through use of technology and products that allow for automated underwriting, insurers can improve the buying experience and attract new insurance customers. More and more insurers have been developing products that allow for data-driven analyses of risk because the technology and tools that support these products are in reach of even the smallest insurers. Systems continue to be integrated with a growing list of data providers that expand underwriting analysis beyond the historical risk evaluation. Underwriting algorithms increasingly are relying on artificial intelligence and machine learning to improve underwriting outcomes. With AI becoming more mainstream, especially through Large Language Models, underwriting will continue to evolve. It is critical, though, that any decisions made through AI be transparent. Gone are the days of black box decisions. The states are forcing this transparency.

It is against this backdrop that Celent evaluated the solutions in the market. This report profiles 20 of the new business and underwriting systems available in North America today. These systems may offer a suite of tools such as a rules driven eApplication, an underwriting rule engine, and an underwriting workbench. Some include case management capabilities.

In addition to this report, a companion report that in the past had been rolled into this report is being released. So You Want to Buy A New Business and Underwriting System outlines the latest developments in functional and technical capabilities in agent onboarding and commission systems and includes a glossary and key components guide.

These reports together should help insurers define their new business and underwriting systems requirements and, where appropriate, create a shortlist of vendors for evaluation. Expanded new business and underwriting functionality and improved technology mean that insurers continue to have a wide set of systems and vendors to consider when looking for a solution to fit their needs. Insurers are encouraged to contact the authors of this report through analyst access to learn more about the vendors and solutions.