Facultative Underwriting System for Reinsurance Decision Speed
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Solution Overview
Problem
Facultative reinsurance processes are inefficient due to the need for reinsurers to review extensive case files, leading to prolonged decision-making times and increased resource utilization, with no existing system for submitting summarized case information to multiple reinsurers.
Innovation Solution
A network-based facultative underwriting case summary submission system that allows ceding companies to submit summarized information electronically or via voice message, enabling multiple reinsurers to render decisions based on salient criteria without reviewing complete case documents.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the complete case file is reviewed by the reinsurer, then the facultative decision is accurate and reliable, but the decision-making time is prolonged (taking two, three or more days)
Solution Approach 1:
The patent extracts only the essential case summary information from the complete case file, identifying and transmitting only the critical data elements needed for facultative reinsurance decisions. This extraction approach allows reinsurers to make accurate decisions without reviewing the entire case file, thereby reducing decision-making time from days to hours while maintaining decision reliability.
Solution Approach 2:
The patent segments the complete case file into distinct components, separating the essential summary information that reinsurers need for decision-making from the supplementary documentation. This segmentation enables efficient processing by focusing only on the relevant segments (case summary) while excluding unnecessary portions of the complete file.
2Reliability
If the complete case file is reviewed by the reinsurer, then the facultative decision is comprehensive, but the staff resources required increase significantly
Solution Approach 1:
The patent extracts only the essential case summary information from the complete case file, identifying and transmitting only the critical data elements needed for facultative reinsurance decisions. This extraction approach allows reinsurers to make accurate decisions without reviewing the entire case file, thereby reducing decision-making time from days to hours while maintaining decision reliability.
3Ease of operation
If case summary information is submitted to a single reinsurer, then the decision-making process is simplified, but the system lacks versatility for multiple reinsurers
Solution Approach 1:
The patent creates a universal case summary submission system that can serve multiple reinsurers simultaneously. The standardized case summary format and electronic submission platform are designed to be universally applicable across different reinsurers, allowing a single submission to be distributed to and processed by multiple reinsurers without requiring separate submission processes for each.
Data Source
AI summary
A method for processing a life insurance facultative case summary submission over a network between a ceding company and a reinsurer. Initially, a facultative case summary submission is received by the reinsurer from the ceding company via the network. Thereafter, a facultative decision is rendered by the reinsurer based on the received facultative case summary submission. Because the information is summarized and sent electronically or via voice message, less information is processed in a faster period of time thereby rendering quicker decisions than when the complete case history is submitted to the reinsurer for review.