Now is the time to think about digital rating
Blog -- 06 September 2022
Author: Todd Rein
Most carriers, MGAs and brokers will be well versed in Verisk’s data and analytics capabilities, but did you know Verisk is also leading the digitalization of rating?
It’s doing this through Rulebook, a rules-based pricing and distribution engine that digitizes the rating process for specialty insurers end-to-end, from submission to bind and documentation. Widely adopted outside of the US, Rulebook harnesses AI to help underwriters more accurately assess and price risk across all major classes of business, automating many manual processes and augmenting risk data with external datasets and analytics.
As well as enhancing decision-making, Rulebook brings huge efficiency savings to underwriters and their partners. Using API integrations and an ACORD-compliant data standard, rates flow seamlessly between parties, enabling users to transact with multiple partners in a consistently language and elicit quotes in seconds.
This means brokers, carriers and MGAs no longer have to rely on spreadsheet-based rating models and emails to generate and exchange quotes, improving speed and efficiency at every stage of the value chain.
Rather than rekeying submissions into a portal for every carrier they want to work with, brokers can access rates from multiple providers within their own user interfaces. Carriers can configure common rules and pricing attributes in Rulebook enabling them to roll out – and adjust where necessary – rules and rates quickly and consistently to multiple delegated authorities and broker partners.
Rulebook can be deployed within an internal policy administration system (replacing Excel workbook-based rating models), be accessed as rating as a service (RaaS) and even underpin or integrate with agent and carrier portals and market distribution ecosystems; Rulebook’s AI underpins the Marsh Intuitive distribution portal, for example
Market-leading MGAs are also adopting Rulebook to replicate the system capabilities of their capacity providers – helping them demonstrate to carriers how accurately they can price and select risks and take the pen on behalf of multiple providers with much greater efficiency.
This digital approach frees up everyone to focus more resources on performance and growth. It opens up a world of one-to-many trading – and brings the global insurance markets directly to the desks of companies based in the US. It also breeds trust and accountability in the distribution chain.
In today’s world, providing better data and transparency to your stakeholders – be that an MGA to its capacity provider or a carrier to its reinsurers – makes you a better partner. Simply reporting a portfolio is profitable is no longer enough. It is essential to be able to evidence that rules are being adhered to, business is being written diligently, rates are being applied consistently, and if rate changes have been made, why.
Rulebook tracks all changes and offers granular audit and real-time reporting capabilities, ensuring compliance from delegated authorities and giving capacity providers confidence and control over their portfolios.
Manual spreadsheets offer no audit trail explaining when or why rates were changed. Moreover, mistakes can easily be made using Excel and way too much time is wasted rekeying information – hindering agility and speed to market.
By adopting a digital approach, underwriters can respond to changing market conditions and get new lines of business up and running quickly while also assuring stakeholders with a clear auditable history.
And by speaking the same digital language, we can all make the world a smaller, cheaper, faster place to do business.
Author: Todd Rein, Head of Sales, US
Pricing, underwriting and distribution, for even the most complex classes of business.
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