Where have I been? It’s been a long time since my last blog posting and people think I’ve died or gone back to the carrier side. Actually I’ve been submerged in the world of carrier policy system administration upgrade. Over the last two and a half years, I’ve been working with many carriers to upgrade their systems to help them increase their market share. This is not unusual, and in fact policy admin replacement has become quite the rage. It may even have its own Facebook page. But these changes have been a little different than the normal selection process, RFP, out with old – in with the new vendor system. These changes have been modernizing the existing “legacy” system with new web front ends, and expanding the carrier’s product offerings by implementing the ISO Rating Service.
By leveraging the automated ISO Rating Service, carriers are able to quickly come to market with new products to enhance their offerings and become the one stop shop they would like to provide their customers. Depending upon the carrier’s deviations and the systems they have in place, by building upon the already set rates and algorithms, carriers can be issuing new policies in a matter of weeks, increasing their market share and better serving their customer’s needs.
Speed to market and the flexibility to modify rating are the two keys to success in the insurance marketplace today. Carriers typically have a particular market they are trying to reach, such as small service businesses like plumbers, landscapers, or construction, and they want to be able to offer these markets all their insurance needs such as BOP, Commercial Auto, and Workers Comp. If they already offer Workers Comp, they can expand their offerings into BOP and Commercial Auto by introducing the ISO Rating Service to their existing systems. Typically, the complexities involved in the integration to the existing environment present the greatest hurdles, but once a solid design is developed and established, the rest is smooth sailing. The service is updated by ISO and can be easily maintained by carriers without the need for large development efforts when new coverages are offered or rates are modified.
With market share increased, and maintenance efforts reduced, carriers can then go back to doing the fun work – focusing on keeping their Facebook page up to date.