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CASE STUDY

Global P&C Carrier Increases Speed to Market by 60%

Insurance governance and control error

Company Background

This client is a top five global property and casualty carrier, providing complex coverage policies for commercial entities across various asset classes. To meet the ever-changing socioeconomic environment and an increasing number of natural disasters, they refined business processes to increase the velocity of re-rating their books of business.

Client Challenge

Managing thousands of raters across dozens of countries to evaluate risk for different assets is challenging. Each rater, being a unique, complex model, is built in Excel and stored in a document management center; this complicates tracking version control across raters, quotes, and final client estimates, and technology integrations across the product value chain are particularly onerous.

Deploying new raters across a complex technology ecosystem means software developers must code the corresponding changes across multiple systems for every new rater.

Implementing a single product averages 9 months, and errors are frequent as different developers hard-code each rate change for each system in the applicable language.

Our
Solution

With Coherent Spark, the carrier deployed 20 products in 90 days.

Spark reproduces the rating logic for each product into 24 code languages with 100% accuracy. This ensures consistency across every disparate technology system that utilizes the outputs and logic of each rater—and updates products in days instead of months.

Coherent also enables the carrier to centralize its logic, ensuring all actuaries, analysts, and systems use the same models for the same risk. Actuaries spend less time maintaining raters and more time customizing components for customer needs.

Customizations are easily connected to the core product, and the client-specific portions are managed, controlled, and shared within the Spark platform.

The Results

Reduced Cost

The carrier eliminated an estimated $14M in development costs and reduced IT overhead by retiring multiple legacy systems.

Centralized Logic

With raters living in a controlled, cloud-based environment, all actuaries could access the same logic, eliminating manual spreadsheet errors.

Faster Product Updates

‍Product updates could be made and shared across all relevant systems in an hour compared to the previous timeline of 3 months –  over 2,000% increase in speed.

Automate product development and deployment to maximize IT resources.