Toronto, ON (Jan. 10, 2014) – Since the ultimate cost of their services is unknown when the contracts are signed, insurers face the uncertainty of not knowing in advance how much they will charge while nevertheless remaining bound by the requirements of profitability and competitiveness. InEdge presents here the top three characteristics to ensure a successful analytics rating solution for optimal pricing. Most insurers face similar issues and these guidelines and principles should help you extract more value from your pricing solution.
Pricing experts need self-service access to all required data, stored in a suitable form, refreshed at regular intervals, and using specialized tools they are familiar with. They expect autonomy from the rest of the business and they certainly do not want to rely on a third-party to access information. The way to achieve all this is via an analytical ‘sand-box’, most likely materialized through what is called a data-mart.
Users responsible for pricing have a right to expect quality. We propose that a pricing Analytics solution should ensure the integrity, integrality, and traceability of the information it provides to the business.
- Integrity: The information brought into the solution was not corrupted either before entering or through the ETL flow;
- Integrality: All the information was processed; hence nothing was lost;
- Traceability: We can trace any piece of information back to its source.
Unfortunately, performance is often an after-thought, while neglecting the fact that analysts usually are working with a huge volume of information in a trial-and-error manner, seeking patterns and correlations among enormous data sets. The reality is that the most important performance gains are made in the design phase of the solution development. The design phase should not only focus on making the solution work, but on making it work well and efficiently.
To discover more on how to design an Analytics pricing solution that delivers value and ROI to your business, please visit www.inedge.com.
For further information, see Solving the Top 5 P&C Rating Process Productivity Problems via InEdge.
InEdge is a consultancy specialized in Business Intelligence and Analytics for the insurance industry. Expert at quickly leveraging data, InEdge seamlessly and powerfully creates business advantage for its clients. Over $10.25 billion Property & Casualty direct written premiums are analyzed through solutions designed and implemented by InEdge’s experienced team. InEdge is headquartered in Montreal and has offices in New York and Toronto. Visit www.inedge.com for more information.