Composite Ratebook Configuration for Insurance Quoting
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Solution Overview
Problem
Insurance policy quoting is challenging due to the difficulty in finding appropriate rating algorithms and rate tables, leading to time-consuming processes and potential system downtime during software code modifications.
Innovation Solution
A system and process for configuring composite ratebooks, which involves selecting and configuring rate routines and rate tables based on policy characteristics, allowing for dynamic matching and integration of insurance policies, thereby streamlining the quoting process and reducing system downtime.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If software code modifications are performed to integrate new rating algorithms, then the system can support new insurance policies, but system downtime occurs and user experience deteriorates
Solution Approach 1:
The system segments rating algorithms into modular, independently deployable components. Each rating algorithm is encapsulated as a separate module that can be updated without affecting the core system, allowing new algorithms to be integrated without causing system-wide downtime.
Solution Approach 2:
New rating algorithms are pre-configured and validated in a development environment before being deployed to production. The system performs preliminary testing and configuration of rate tables and algorithms, so that when deployment occurs, it can be done with minimal disruption to system availability.
2Adaptability or versatility
If manual configuration of rate tables and algorithms is performed, then customization is achieved, but the process becomes time-consuming and productivity decreases
Solution Approach 1:
The system enables self-service configuration where users can independently configure rate tables and select algorithms through a user-friendly interface without requiring manual code modifications or extensive technical expertise, thereby maintaining customization while improving productivity.
Solution Approach 2:
The configuration system is dynamic and adaptive, allowing users to modify rate tables and algorithm selections in real-time based on changing business requirements. The system automatically adjusts and validates configurations without requiring time-consuming manual processes.
3Adaptability or versatility
If comprehensive rate tables and algorithms are maintained to cover all policy variations, then coverage completeness is improved, but system complexity increases
Solution Approach 1:
The system employs universal rate tables and algorithms that can be applied across multiple policy types and variations. A single configurable framework supports diverse insurance products through parameterization rather than requiring separate dedicated systems for each policy variation.
Solution Approach 2:
The system manages complexity through parameterization, where rate tables and algorithms are configured using adjustable parameters rather than hard-coded structures. This allows comprehensive coverage of policy variations by changing parameters rather than adding complex system components.
Data Source
AI summary
Generating a quote for a policy is disclosed. An indication of an insurance policy to be quoted is received. An appropriate composite ratebook to apply to the insurance policy to be quoted is determined. The composite ratebook has been previously configured to be associated with a particular set of one or more configuration parameters, one or more rate routines, and one or more rate tables. A rate routine associated with the determined composite ratebook is applied to a coverage in the policy to be quoted.