Straight-Through Processing In 2021

Straight-through processing (STP) is becoming more common in insurance underwriting and claims, especially in personal lines, individual life and small commercial.

Adoption rates in more complex lines and in claims processes remain relatively low, so STP is by no means universal across the industry.

However, it’s likely to remain a priority for insurers seeking to improve the ease of doing business for their distribution partners and create more convenient customer experiences for their policyholders.

Generally speaking, STP refers to the ability for insurer systems to automatically process transactions without manual intervention or input. The system ingests data digitally and completes the transaction based on decisions governed by algorithms, including predictive models and simple business rules.

STP offers insurers benefits in speed, consistency, productivity and application throughput while making the customer experience quicker and more convenient.