Page 29 - Insurance Times April 2021

Key underwriting challenges are discussed below together Grouping them towards a rules and workflow based
with IT enablers to address them. approach.
A. Underwriting Architecture
Implement changes while working within the F. Meet internal exposure reporting needs
underwriting reference architecture in designing IT Alert mechanism to track exposure against risk limits.
solutions with the IT team. E.g., Stakeholder Reports on exposure in surety related risks - industry
perspectives who represent the parties who will be level.
impacting or impacted by the underwriting and policy
issuance function since there are multiple internal and G. IT enablers for a smoother and efficient
external stakeholders in Surety Bond.
underwriting process:
A thorough understanding of the Underwriting Process is
B. Rules Management
needed before discussing the interfaces that needed to be
Listing various business rules and regulatory rules to built with external information sources and the risk factors
configure them systematically. to be studied. Apart from an efficient IT workflow system,

which was discussed before, the other themes and best
C. Underwriting Guidance and Training practices followed by global leading providers of Surety
Shortage of skilled underwriters in surety business. Bond are represented in the Figure 10 below.
Knowledge management system to share knowledge on
surety cases. Understanding of the claims process in
Surety Bond, how IT with standards can
D. Decision Making during Quoting/ Allocation
Building functionality to help underwriters through help provide solutions
decision making tools. A. Claims Process - Claimant Perspective
Statistics in the Surety Bond industry show that most
E. Handling complex deal structures contractors do an excellent job and meet their
Enable the handling of structures by logically breaking commitments. However, in the world of contracting and sub-
them down. contracting, things can go against plan and targets are not

Figure 10 - Underwriting evalution - surety provider proces

The Insurance Times, April 2021 29