Learn something new every day
More Info... by email
Underwriting software takes the complex job of underwriting, in which underwriters have to search through heavy manuals for the correct loan or mortgage package that applies to the customer, and automates it so underwriters can complete a weeklong application in about a minute. This efficiency means most large companies have underwriting software of some kind to help the underwriting department accept and finish applications. Choosing the best underwriting software depends on the company’s niche and needs, the intended number of users, whether the software updates its catalog, and reporting features.
Medical underwriting and mortgage underwriting are two completely different jobs, with different codes and regulations. There are different packages, different qualification guidelines, and many other differences between each type of business model. A company must get underwriting software that fits the company; otherwise the software will cause myriad problems. Most software is only made for one particular niche, but there are a few that can be used for several different niches.
Most underwriting software comes in several package sizes. Smaller packages are meant for just one underwriter, while larger ones are intended for several users or a large base of underwriters working at the same time. The company must get an underwriting program that fits its number of underwriters so everyone can automate the process and work more efficiently. A company can buy a separate underwriting program meant for one person for each underwriter, but this typically costs more than buying a larger package.
Underwriters have to look through catalogs for packages and approval qualifications for each application. The software does this automatically, which makes the process much quicker. To be effective, the underwriting software must be able to update its catalog of codes. If the codes are not updated, the company may not be able to offer new packages, or may qualify customers for loans or insurance that the customers really should not qualify for under the latest regulations.
The company’s headquarters, at least every quarter, will usually want to look at the underwriting records to see who is being qualified and under what criteria, to ensure everything is running smoothly. Underwriting software that has reporting features, especially those with graphical representations that easily show the type of information that managers need, will make this process easier for everyone. Software with customizable and powerful reporting features is better than software with weak reporting features or software with no reporting tools.
Excellent post. I am sure carriers looking for underwriting solutions will find it extremely useful. Personally, I found the underwriting software offered by MajescoMastek to be quite comprehensive and in line with the requirements of this key insurance function. I would also think that their vast body of experience and exclusive domain knowledge puts them ahead of their game so far as underwriting and other insurance technology solutions are concerned.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!