Property & Casualty Stand-Alone Rating Engines

Novarica recently published a report titled Market Navigator US Property/Casualty Rating Solutions 2010, which provides an overview of the available stand-alone rating solutions for US property/casualty insurers. According to Karlyn Carnahan & Lis Maguda, authors of this report, speed to market is a critical capability to cope with competitive conditions in the insurance marketplace, requiring easy and fast modification of rates and algorithms. Extending rating capabilities to agents is becoming a requirement—one of the basic capabilities to be in the market. Stand-alone rating engines are used for a variety of reasons, but primarily to externalize the rates, rules, and logic associated with rating from the policy administration system to create speed to market.

As the authors point out, carriers who run multiple policy administration systems, web quoting systems, and comparative raters end up with data redundancy, inaccuracies, and duplication of efforts as rating changes are implemented in multiple solutions. Using a stand-alone rating engine can ease the high transaction levels on the policy administration system.

When looking for a vendor who has a rating solution, look at whether the vendor is an official ISO business partner, and whether they offer a subscription service for maintenance of ISO products for better speed to market. ISO ERC provides ISO content that has been interpreted by ISO.  As the first ISO Electronic Rating Content™ (ERC) Associate and the first policy administration system vendor to implement ISO ERC, Camilion Solutions works closely with ISO on the delivery and definition of electronic bureau content.

In addition to being available with our policy administration system, ISO ERC is also available with ProductAuthority, an innovative product development and management system that is  policy administration system agnostic.  ProductAuthority includes a rating engine, a product configurator, and a business rules engines. The ISO Electronic Rating Content is pre-populated into the rating engine, which can then be customized and deviated by customer’s resources to create company specific products.  In addition to supporting rating for ISO based products, ProductAuthority can also support rating for non-ISO products.

ProductAuthority includes Lifecycle Manager.  Lifecycle Manager provides a product management workstation that includes the ability to configure collaborative workflows to manage and track all of the participants and tasks in the rate management and product development workflows.

To learn more about ProductAuthority, visit http://www.camilion.com/Product_Development_Solution.php

'carriers who run multiple policy administration systems, web quoting systems, and comparative raters end up with data redundancy, inaccuracies, and duplication of efforts as rating changes are implemented in multiple solutions'