Fremont, Calif. - A recent study on underwriting in the $222 billion commercial lines insurance industry has revealed that U.S.-based property/casualty insurers are taking new approaches to risk assessment and acceptance to sustain profitable growth in their business. The study, commissioned by Infosys Technologies Ltd. and conducted by TowerGroup, was designed to assess the strategic direction and readiness of the commercial underwriting market, from both business and technology perspectives.The study found that P&C commercial insurance companies are choosing to make the strategic shift toward "flow" and "transaction" underwriting to build competitive advantage and gain profitable market shares. Flow underwriting promotes straight-through underwriting for risk classes that were previously underwritten through manual, subjective evaluation by underwriters.

The "low" or "no-touch" transaction approach is supported by automated decision support capabilities so that only "exceptions" are processed by underwriters. This underwriting approach reduces cost and saves time, and also enables consistency and controlled underwriting. Furthermore, the "low and no touch" (flow) underwriting approaches enable underwriters to focus on more complex risk submissions and develop the market through enhanced distributor interactions.

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