Business Intelligence for Insurance : Risk rating is a core process - FellowDSS
Industry: P&C
On-level risk-rating and rate development integrated platform
Risk rating is a core process of any insurance company's product development cycle. Put in simple terms, anything an insurance company does to establish prices for different types of risks can be regarded as "risk rating". The risk rating process is crucial since setting the price point of premiums for risks can have a significant impact on the company's ability to sell policies profitably.
Rating Analytics is a difficult task given the current state of decision support environments at Insurance companies. Several issues inherent to Rating Analytics hamper the effectiveness of the overall rate setting process, including:
Difficulty with Book of Business Segmentation;
Multiple instances of the Rating Process;
Analytical limitations in understanding On-Level Experience.
What is FellowDSS On-Level Analytics?
FellowDSS On-Level Analytics is a suite of integrated tools that perform On-Level Rating Analytics (segmentation, rating and experience analysis). FellowDSS On-Level Analytics has been developed with the specific needs of Actuaries in mind and eliminates many of the issues with today's Rating Analytics environment and with the rate development process. In the hands of experienced Actuaries, FellowDSS On-Level Analytics delivers a comprehensive understanding of the impact of rate and rate rule changes or extensions on key performance measures of P&C insurance.
Benefits include:
Improved Actuarial Focus;
Actuaries spend more time performing dislocation or other types of analysis and less time on programming tasks;
Improved Competitiveness;
More rating analytics projects per year ensure products are both competitive and profitable in desired markets;
Increased Management Transparency;
The FellowDSS On-Level Analytics environment is fully manageable and ensures data is up-to-date and relevant;
Actuaries can choose to publish the On-Level Experience to key stakeholders within the company;
Cost-Effective;
Fellow DSS leverages existing investments in Enterprise Rating technology by giving it a Decision Support and BusinessIntelligence dimension.
How does FellowDSS On-Level Analytics deliver these benefits?
FellowDSS On-Level Analytics empowers the actuarial process by providing actuaries with scenario-building tools to support their rate development process. FellowDSS On-Level Analytics also dramatically reduces the time and cost requirements of the rate development process mainly because:
It does not require programming;
It supports scenario management that enables quick comparisons of rating assumptions;
It interfaces with existing rating engines / processes eliminating the need to "re-create" the rating process or environment for tariff simulation;
It provides an environment for Dislocation Analysis;
It is based on the historical data (premiums and loss experience).
For more information on FellowDSS On-Level Analytics, please contact us.
