In part one of this series on rating systems, we looked at how traditional development processes can expose your insurance business to risk. Among the most serious of these are having a single point of failure in your pricing model and the financial risks that result from long development cycles that limit how often you can update pricing. In this post, we take a look at a new approach that enables you to complete a rating initiative by defining and deploying rating models, tables, and algorithms in a fraction of the time, while empowering you to safeguard your margins by revising pricing as often as your business demands.
It’s the ultimate irony. Insurance carriers are in the business of risk management, assessing risk while predicting revenue and expenses and then pricing for that. However, the mechanisms many carriers use to generate the rating systems their pricing depends on expose them to risk.
Last week I had the pleasure of joining my industry colleagues at the LIMRA 2016 Enrollment Technology Strategy Seminar in Charlotte, NC. We spent a fun evening at the NASCAR Hall of Fame which also presented me with an interesting juxtaposition because NASCAR is a sport based on speed, strategy and serious horsepower, yet our industry has been stuck behind the pace car for quite some time.
Who is the current pacesetter? It’s the majority of group benefits insurers with legacy systems that lack the horsepower necessary for their business to move up in the field.
Last week 85 benefits enrollment and technology professionals braved record levels of snow to make it to Boston, Massachusetts—not to see Tom Brady ride a Duck Boat with the Lombardi trophy, but to attend the LIMRA 2015 Enrollment Technology Seminar.