Insurance product and pricing rule integrations
The rules on products and pricing approved by the insurer are passed on to sales channels. The proposal preserves the conditions used, and the contract is approved by the insurance system used.
Product protection and price rules are changed across multiple channels without a harmonised version and application conditions. For the same presentation, unexplained differences in bids are obtained or a new rule is applied to an incorrect contract.
How the solution works
- Versions of the product and rates approved by the insurer are passed on to the channels using them.
- The data of the proposal is provided to the responsible source of the rules, while maintaining the channel conditions and authorized risk solution.
- The resulting price and protective result is linked to the validity of the offer, and the accepted version is passed to the policy system.
Key challenges
- Product and pricing rules are hard to change
Solution capabilities
Transfer of Product Rules
The channel receives approved dependencies for protections, limits, deductions and exceptions from the insurer's source of rules.
Application time
There is a distinction between the entry into force of the rule, the validity of the proposal and the period of protection of the policy.
Price response basis
The version of the used rate, coefficients and allowance and the system that provided them are preserved next to the calculated offer.
Risk Acceptance Relationship
The individual assessment answer only applies to the same accepted scope.
Channel compliance check
The results of the amended rule are cross-checked between the insurer's source and channels before its use for offers.
Contract version
The accepted quotation is linked to the issued contract; a new calculation does not automatically change existing insurance cover.
Business context
- Product and pricing rules are hard to change
- Product protection and price rules are changed across multiple channels without a harmonised version and application conditions. For the same presentation, unexplained differences in bids are obtained or a new rule is applied to an incorrect contract.
- Sales channels apply approved insurance rules
- The customer can receive an insurance offer directly from a partner or insurer. The approved rules for each channel allow to justify the price of his offer and the terms of the contract. Product changes may reach the sale more quickly, but the risk acceptance itself remains a decision of the responsible insurer.
Core features
- Transfer of Product Rules
- Application time
- Price response basis
- Risk Acceptance Relationship
- Channel compliance check
- Contract version
Key integrations
- Product and Risk Management
- Rules adopted, application limits, and a specific assessment response.
- Proposal Channels
- The data required for the calculation and the conditions in force for that sales channel.
- Policy Administration
- The proposal, the version of the contract and the real basis for the amendment have been accepted.
Potential impact (%)
The ranges indicate an illustrative relative change in the metric under the stated assumptions. Results depend on the starting position and actual use of the solution. Percentages for different metrics must not be added together.
Change Checking Work Between Channels
16–42%Decreasing
This illustrative scenario assumes that 40-70% of information searches and repeated cross-checks can be addressed. That share is assumed to fall by 40-60%. Company data is needed to verify both the addressable workload and the resulting change.
A readjustment of the results and correction for a similar product change is measured.
Proposals with the wrong version of the application
12–42%Decreasing
This illustrative scenario assumes that 30-60% of errors can be addressed through the data and rule checks described. That share is assumed to fall by 40-70%. Company data is needed to verify both the addressable share and the resulting change.
Estimates are made for a faulty version or time-corrected bids, separating the allowable individual price clause.
Conditional calculation scenarios. The assumptions have not been validated against client measurements.
When this solution is relevant
- Insurance rates and product conditions are updated in several sales channels.
- When drafting a contract, it is necessary to verify which version of the rules is valid for the previously submitted proposal.
Implementation requirements
Insurance product rules and rates are approved by the insurer's responsible specialists. Assessing how the policy system used manages the versions of the rules and their presentation to the channels; the addition must maintain the validity of the proposal and the integrity of the contract conclusion data.
Further development options
- Additional product rules according to their true protection and price structure
- Contract renewal options according to the proven logic of continuity for a specific product