Rating engine vendors should position their offerings as essential for P&C insurance carriers to remain competitive
Boston, MA (Dec. 13, 2017) — Aite Group’s latest report, Stand-Alone Rating Engines for P&C Insurance Carriers: A Vendor Overview, examines the options available to carriers that believe it is necessary to have a more robust rating engine to be more competitive. While property and casualty insurance carriers around the world strive to underwrite policies more quickly and more accurately, they must also underwrite risks in newer industry classes for which copious data does not exist. The shifting landscape might require P&C carriers to review one of the basic yet most important components of the underwriting process: the rating engine.
“P&C carriers are notoriously slow to change and prefer to be fast followers as opposed to leading adopters,” says Aite Group senior analyst Jay Sarzen. “If carriers do not perceive that their ratings engines are constraining them from competing effectively, then there is no compelling reason for them to deviate from their current path. But considering the current market shifts, carriers ought to re-examine whether their embedded rating engines will be sufficient for a changing environment.”
This report is based on eight interviews conducted between September and November 2017 with some of the leading stand-alone rating engine providers in North America.
About Aite Group
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.
Source: Aite GroupTags: Aite Group, report