Elevondata Rater

Objective

The objective of Elevondata Rater is to enable a home insurance provider to digitize their rating process and discover the best insurance premiums and coverages. This empowers insurance providers to attract target customer segments in existing markets and new product lines.

Business Challenges

The US-based insurance provider faced complex and frequent price discovery processes across various business lines, including home, auto, mobile and manufactured homes, and dwelling fire insurance. With over hundreds of factors and calculations impacting price discovery, the company struggled with multiple time-consuming iterations and the need for frequent revisions to adapt to changing trends and priorities. They required a custom solution to consistently update their pricing models and support the launch of new products or expansion into new geographies.

Solution

• What-if analysis: Elevondata Rater Framework offers a scalable and fast premium rating platform that can be customized to accommodate the required parameters and logic. It enables the insurance provider to perform what-if analysis, exploring different scenarios and assessing the impact on premiums and coverages.
• Collaboration: The cloud-based and secure solution allows multiple users to collaborate simultaneously for impact analysis and price modeling. This fosters efficient teamwork and facilitates consensus-building among stakeholders.
• Revenue and profitability impact: Elevondata Rater enables the insurance provider to score existing policies on new rates, helping them determine the financial impact on the business's profit and loss statement. This insight allows for informed decision-making regarding pricing strategies.
• Branching and rollback capabilities: The framework supports trial and error by running multiple tests in parallel and provides branching and rollback capabilities. This empowers the insurance provider to explore different business routes and identify the optimal approach based on accurate and reliable data.
• Framework as a QA Platform: Elevondata Rater serves as a quality assurance platform, enabling the insurance provider to validate the approved rating models within their core system for any discrepancies. This ensures the integrity and accuracy of the rate-making process.

Tech Stack

The Elevondata Rater framework is built and deployed on a secure and scalable cloud architecture. It leverages open-source technologies and utilizes Extract, Transform, Load (ETL) tools, resulting in zero licensing overhead.

Benefits

• Improved efficiency: By implementing Elevondata Rater, the insurance provider significantly reduces the Service Level Agreement (SLA) from 4 days to 60 minutes. This optimization enhances the efficiency of the actuaries, enabling them to evaluate additional coverage combinations and make informed decisions more swiftly
• Scoring of new business and endorsements: The solution enables the insurance provider to evaluate new business opportunities and offerings by scoring them against the established rating models. This supports effective decision-making and promotes growth
• Exposure management: Elevondata Rater provides the capability to try and test the financial impact of varying parameters. This empowers the insurance provider to mitigate and accommodate risk exposure by analyzing different scenarios and their potential outcomes
• Core system validation: The solution enables the insurance provider to identify and correct defects in the live rating model within their core system. This validation process enhances the accuracy and reliability of the rate-making process, ensuring optimal results