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UPC Case Study

Coherent Spark speeds premium validation and forecasting

Quotation marks

“We seek innovative technology to help us make better risk selection, so we can deliver greater value both to our customers and our shareholders.”

—Tony Hare, Vice President, Underwriting UPC Insurance

Client Problem

To be there for their customers in catastrophe-prone areas, UPC Insurance must continue to manage P&L efficiently and effectively. Challenges include an increase in reinsurance costs, as well as an increase in losses from the high frequency of catastrophe events in recent years.

UPC leadership sought a partner to better achieve continual re-rating with higher speed and accuracy, but at lower cost. The leadership team seeks to implement a process that is consistent, ongoing, and always available. They want the ability to develop re-rated policy premiums for all states and products more frequently with far less effort.

Coherent Solution:

The journey was quick and easy—under two months from first seeing Spark to implementation. The UPC leaders moved swiftly to determine the best proof of concept (POC) to meet their business needs. They decided to use Coherent Spark primarily for its powerful, high-speed simulation and testing capabilities. Upon making their selection, the UPC business team was up and running on Spark after just two training calls.
quote

“With Coherent Spark, we re-rated a significant portion of our portfolio in a matter of minutes. The process reduced multiple days of coding work, hand-offs, and error checking from our analyst group down to just a few hours of focused work. We also gained confidence that the process is repeatable and reliable for future projects.”

—Lee Knepler, Chief Actuarial Officer UPC Insurance

Outcomes

Since implementing Spark, UPC can now re-rate their entire book of business per state monthly or even on the fly—whenever the environment, regulations, or markets change—in record time.

Now in under 10 minutes, UPC can accomplish what used to take three weeks.

Spark’s testing functionality enables UPC to run through two scenarios and compare them for fast, reliable validation. As a powerful double-check, Spark gives UPC the confidence of making sure results line up with what they expected.

The leadership team can also get more accurate premium forecasting, based on current data. With the insights they glean, UPC leaders can either quickly pivot off decisions they’ve made as circumstances change, or double down on the things that are working well.

With Spark performing high-speed re-rating, now actuaries can go back to what actuaries do best, such as developing rate indications and doing loss reserving—more complex activities that drive value.

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About the client

  • Florida-based property and casualty carrier serving Southeast and Gulf states
  • Premier provider of property insurance in catastrophe-exposed areas
  • Multiple lines of business, including homeowners, landlord/seasonal, condominium, flood, renters, and commercial residential
  • Invests in purpose-built technology to accelerate digital transformation and provide best-in-class customer experience
  • ~ 500 employees with offices in multiple states
  • $1.38B premiums written through 1H 2021
quote

“The first big benefit we saw was the high-speed re-rating capability. Spark enables us to re-rate our portfolio faster, so we can do both premium validation and premium forecasting more frequently. We use Spark to ensure auditable accuracy looking backward, and to see the future more clearly. Now we can take profitability decisions earlier. It’s far superior to do it this way.”

—Tony Hare, Vice President, Underwriting UPC Insurance

Ready to see how Coherent Spark can work for you?

Give us a complex logic model and we’ll show you how Coherent Spark can transform it into a business accelerator. Contact us today for a customized demo.

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