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Underwriting is a decision intensive area. When Actuaries or Underwriters define risk assessment, selection and classification criteria, they are essentially specifying decision logic such as what is the risk posed by a Customer, what is the expected loss from a particular Customer, how probable is the default risk, which risk class or tier does the Customer fall under etc.

If these criteria are made available as a system, instead of being made available as underwriting manuals, Organizations will be able to take automated decisions and respond quickly to requests from Agents, Private label partners and Customers.

Automated Underwriting Systems require the following key functionality:

• Easy to use, GUI-driven, environment for Business Users to author risk decision logic: Such a “workbench” should enable Users to quickly define risk causing Factors, their groupings (into Elements) and Weights, to define eligibility criteria and to define classes / tiers, segments and models. Further, Users should be able to define rules that take into consideration aspects such as Channel, Private label partners, Life-time value of Customer etc. Finally, Users should be able to copy existing definitions and make modifications so as to introduce a new underwriting strategy or a strategy for a new market.
• Consolidated repository of definitions and risk decision logic: Eligibility, underwriting, tiering, classification and other such rules should be made available to different stakeholders in the organization (as a callable service). This should enable consistent, accurate delivery of decisions, in an automated manner across the organization, while providing intuitive, easy to understand, explanations for the decision logic. Further, to enable rapid modifications and updates to decision logic, centralization of such logic is critical.
• Decision engine: The engine enables automated decisions like tiering, risk classification etc, to be taken in real-time, at the time of a transaction based on the needs, location, age, channel and other factors. Further, the engine also requires to make the output results available to product engine for product eligibility check, pricing engine for risk based pricing, policy system for appropriately wording inclusions / exclusions. As the engine evaluates all aspects and rules in making the decisions, agents, sales teams and underwriters need not waste time looking up and interpreting bulky underwriting manuals

ValueMomentum Services
With a track record of production installations at several Insurance Carriers (P&C, Life) and Lenders (Credit Card and Mortgage), ValueMomentum is at the forefront in assisting Clients with initiatives related to Automated Underwriting, Risk Decisioning. ValueMomentum also extends to its customers an evolved methodology, reusable artifacts and accelerators to design, develop, deploy and maintain Underwriting / Risk Decisioning applications.