Paramount Life & General Insurance Project Profile
Insurance company speeds up underwriting process with workflow automation
Project Duration: 2019 to present
Industry: Insurance Industry
About Paramount: Paramount Life & General Insurance Corporation is a Philippine-based insurer founded in 1950, fully Filipino owned and operated. It provides a full line of life and non-life insurance products and product packages to individuals, families, businesses, and other organizations.
Project description: Integration of Agent’s portal and Activity Factory Workflow for a faster underwriting process.
Problem & Solution: As today’s customers expect faster responses and insurance processing time, insurance companies are turning to technology. As a solution to this growing need, Paramount automates its policy underwriting process with Activity Factory.
Automation of Insurance Underwriting with Activity Factory Workflow
The underwriting team used to manually review hundreds of insurance applications in a day. With the paper-driven workflows, underwriters spend time navigating the process on top of the underwriting tasks, which resulted in longer turnaround times.
Activity Factory solved these problems by replicating the current workflow in an electronic workflow system. The underwriting process involves the following:
Step 1: New Business Processing
Before the actual underwriting, the process starts with an insurance agent submitting the insurance policy application documents in a mobile app. This also involves making sure that the information provided is correct and complete.
Step 2: (Medical Insurance Bureau) MIB Checking
This involves looking thoroughly and evaluating the results of medical exams. In this process, the underwriter selects a decision based on their assessment.
Step 3: Application Decision
The decisions are classified into the following:
a) Approved Standard – An application can be approved 'as submitted’ and a standard premium would be set for the insured.
b) Approved Substandard – A substandard policy may be offered for those who fail the standard underwriting option and pose a higher risk of filing a claim due to significant health conditions.
c) Postponed – An insurance application can get postponed if the person applying has a pre-existing condition that makes him/her a “high-risk” for the insurer. The insurance policy that was applied for may not be offered at that moment, but they can decide on offering a policy at a higher rate in the future.
d) Declined – This indicates that the insurance application will not be offered and is immediately rejected.
From Step 4 Onwards
After the application decision, Activity Factory will initiate some actions until the workflow ends.
Easier document processing. By eliminating paperwork and manual processing of insurance applications, Paramount is able to reduce document processing time, avoid missing information, and manage applications with more consistency.
Process transparency. Insurance brokers and managers are able to stay on track with the status of an insurance policy and share this information with the policyholder for a higher level of customer service.
Faster and more accurate underwriting process. Automation has sped up Paramount’s underwriting process with Activity Factory’s ability to recognize the next steps and initiate appropriate actions. This ensure process continuity and enables faster conversion of potential customers to policyholders.
Activity Factory is a workflow automation tool that allows companies to build consistent and auditable compliance and operational workflows, ensuring that the right processes are followed at the right times while staying compliant.