Unified Ratemaking Core With Common Schema for Insurance Rating
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Solution Overview
Problem
Existing insurance ratemaking systems suffer from inefficiencies and redundancies due to separate analytics and production rating processes, leading to increased costs and data schema discrepancies.
Innovation Solution
An integrated ratemaking platform with a unified rating core and common data schema that combines analytics and production rating functions, utilizing a data enrichment service to convert data into a common format, reducing the need for separate engines and minimizing handoffs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If separate ratemaking analytics and production rating systems are used, then specialized functionality is maintained, but system complexity and data conversion requirements increase
Solution Approach 1:
The patent combines separate ratemaking analytics and production rating systems into a unified ratemaking platform. The rating core executes both ratemaking analytics (generating rate plans) and production rating (generating rate quotes) functions within a single integrated system, eliminating the need for data schema conversions between separate systems while maintaining specialized functionality through modular rating plan configurations.
2Productivity
If data schema conversions are required between systems, then data can be exchanged, but processing time and operational efficiency decrease
Solution Approach 1:
The patent implements a universal data schema that serves multiple functions within the ratemaking platform. The same data schema is used for both ratemaking analytics and production rating operations, allowing the system to process rate plan generation and rate quote generation without requiring data conversions. This universal schema acts as a common language across all rating operations, eliminating time-consuming conversion steps.
3Reliability
If multiple separate systems are used, then functional specialization is achieved, but integration costs and operational overhead increase
Solution Approach 1:
The patent segments the ratemaking platform into modular functional components that operate within a unified system architecture. The rating core can execute different rating plans (commercial, personal, group lines) as separate modular units, maintaining functional specialization while avoiding the complexity of integrating multiple separate systems. Each rating plan is a self-contained module that can be independently configured and executed.
Data Source
AI summary
Implementations include an integrated ratemaking platform utilizing a common rating core that combines the functionality of an analytics rating engine and the production rating engine. Through the platform, one or more rating plans may be generated from rating plan configurations provided to the system, analyzed for performance, and utilized in response to a rating call received at the platform. The platform may include ratemaking analytics components to analyze and evaluate rating plans based on one or more business rules and production rating components to implement the evaluated rating plans. The various components may use a common data schema for sharing data. Certified rating plans may be promoted and published to the production rating components for use in generating the rate quotes from the certified rating plans.