During Novarica’s recent personal lines Special Interest Group meeting, insurer clients and Research Council members had the chance to network, exchange knowledge, and share their personal experiences with rating providers, cloud migrations, and low-code/no-code solutions.
P/C Rating Systems
Personal lines insurers looking to improve current speed to market and to become nimbler in their ability to define, configure, implement, and maintain products have increasingly leveraged certain rating engines. Rating providers help insurers deliver new enhancements and products to market quickly.
One participant shared that they have previously leveraged a rating solution for their legacy systems with great success, and they are now in the process of rolling off the mainframe and switching to a different rating solution. Testing and maintaining rates within a rating engine takes special consideration; one participant noted they required a test stack with each rate change and involved actuaries when testing out the product.
Cloud Migrations and Transformations
The conversation also touched on migration to the cloud. With greater customer demand for more engaging digital experiences and 24/7 service, migration of services to the cloud has become increasingly widespread among both property/casualty and life/health/annuity insurers. Given the vast amounts of ingested data from agents and policyholders accessing their digital platforms, personal lines carriers have long been early adopters of cloud.
Personal lines insurers, who have historically outpaced commercial lines insurers in cloud migration, are most often adopting cloud to support their data and analytics initiatives. Early adopters of cloud-native technology are now reaping the many benefits, including auto-scaling, auto-redundancy, greater agility, increased flexibility, and on-demand pricing.
The cost savings associated with adopting cloud-native technologies cannot be overlooked; early adopters have reported cost savings from serverless computing and use of cloud platforms. The advantages of cloud become even clearer when considering the impact of increasingly commonplace catastrophe events and the resulting spikes in load, which on-prem data centers often struggle to process.
Low-/No-Code Providers
Low-/no-code providers offer solutions which are intuitive, use model-driven design, automatically generate code, and represent workflows and business logic graphically. Participants debated the benefits and challenges with deploying low-/no-code platforms.
While some agreed that low-/no-code platforms are well-positioned to take advantage of cloud nativity and well-suited for enabling digital transformation, another participant shared that one low-/no-code platform’s control over the user interface layer was very inflexible and didn’t offer the insurer the desired freedom and control. One participant shared that they are embarking on a low-/no-code deployment, despite having a uniquely complex rating and submission use case.
For more on personal lines trends, check out Novarica’s report Business and Technology Trends: Personal Lines.
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