How to Solve The Jigsaw Puzzle of London Market Underwriting

  • Sebastia Company Mas

January 24, 2025

The commercialisation of jigsaw puzzles was invented in London by John Spilsbury, a cartographer and engraver, in 1760. For even longer than that, and in the same city, insurance underwriters work hard at solving the jigsaw puzzles of complex and commercial insurance.

However, their task is difficult. Imagine trying to complete a puzzle, but almost all of the pieces are disordered and out of order. They come in different boxes; some of the pieces are even missing. To make matters worse, the picture is also a lot more complex and intricate than usual.

This is the reality of insurance underwriting in the London Market. The submissions are complex, the perils niche, the stakes high. The pieces to solve the puzzle come mixed up: as much as 80% of the data that an underwriter receives upon submission is unstructured, according to Accenture. Underwriters then spend too much time sorting the pieces, and looking for the missing ones. Instead of applying their expertise to the assessment of risk, they are busy with manual tasks with little value add, such as repetitive data entry.

To end these inefficiencies, insurers are eager for modernisation. They can be, however, tempted by quick fixes such as underwriting workbenches, often while postponing a comprehensive core modernisation. This is akin to forcing mismatched pieces together in a puzzle; it may seem effective at first but will ultimately lead to a fragmented picture. Point solutions promise immediate relief, but oversimplify the complexities inherent in the London Market.

What underwriters truly need is a comprehensive platform that makes solving the puzzle more efficient and effective. Imagine having access to a broad, clear table to spread out all the puzzle pieces and an accurate picture guide. A lot of the pieces are automatically sorted to their right position, and you even get some of the missing pieces. In the context of underwriting, this translates to having access to an integrated, comprehensive system that brings together all data and processes seamlessly. This allows underwriters to make faster, more informed decisions.

Guidewire supports the entire insurance lifecycle, from policy administration to claims servicing, in one cohesive ecosystem. This allows an underwriter solving the puzzle of a submission to see other completed corners of the picture, such as the data an insurer already has about an account, for example in claims. Guidewire enriches the puzzle with some of the missing pieces, providing risk insights at the point of need with tools like HazardHub for property data or Cyence in the case of cyber risk.

Just as assembling a jigsaw puzzle requires patience and the right tools, so does navigating the multifaceted landscape of insurance submissions. If you're eager to dive deeper into how technology can transform the underwriting process and help you solve the puzzle of commercial insurance, we encourage you to check out our new ebook. It offers valuable insights and practical strategies for embracing an end-to-end platform that enhances efficiency and decision-making in underwriting.