“Copilot dramatically improves our risk analysis, supports a tighter conversation with our brokers, and ultimately allows us to make pricing and decline decisions more quickly.”
The E&S division of a Top 10 carrier struggled with risk selection and broker relationships. Several predictable losses damaged the book each year, as underwriters missed exposures, triaged poorly, and did not fully adhere to complicated guidelines. A subsequent focus on thorough risk evaluation led to slower response times to brokers, causing additional relationship strain.
The carrier selected Copilot as their underwriting workbench to streamline their underwriting operations and enable better broker relationships. After initially implementing for a small set of underwriters, the insurer opted to expand to the broader group, multiplying the benefits of Copilot across many more submissions.
Before Copilot - Challenges with Profitability and Relationships
Policies were often bound without awareness of critical but hard-to-find exposures. For example, it was common to find repeated lawsuits or liabilities associated with other named insureds on policies that were not thoroughly vetted.
In addition, profitability challenges loomed large for the carrier. Profitability varied widely by product and industry, reflecting a lack of uniform risk selection and underwriting quality.
Risk analysis took too long, meaning that broker responses were frequently delayed. Over time, this undermined the carrier’s relationship with their brokers and led to a lower-quality submission funnel and subpar bind rate.
With Copilot - Immediate Benefits and Sustained Growth
The impact from Copilot was immediate, and the insurer was pleasantly surprised with how big a difference it made - a combined ratio improvement of 940+ basis points.
But where did that impact come from?
First, Copilot enabled the carrier to identify exposures comprehensively, across every industry and product. This resulted in a loss ratio reduction of 450 basis points, according carrier calculations.
Throughput increased significantly as well. Underwriters experienced a 58% improvement in underwriting time from better risk prioritization, triage, and faster guideline application. This efficiency improvement alone led to an incremental increase of 9% in GWP growth.
Importantly, broker relationships have improved significantly due to faster responses and more informed communication. Better relationships has delivered better distribution, not to mention a notable increase in bind rate.
All told, the carrier saw instant results from Copilot, and the positive returns continue to grow as the partnership enters its third year.