September 30, 2021
Our one-stop solutions and services enable the entire gamut of actuarial and analytics insurance operations.
MAKING THE RIGHT INVESTMENT
Investments in data science and advanced analytics in actuarial practice pay rich dividends by helping enhance the work actuaries do, whether it is advisory or consulting. A data science technology stack can include tools leveraging artificial intelligence (AI), machine learning (ML), deep learning (DL), robotic process automation (RPA), decision support systems (DSS), and natural language understanding/processing (NLU/NLP) chatbots and voicebots. The technology’s real value is augmenting human judgment and decision support in claims or underwriting through AI, RPA, chatbots, and voicebots like Siri and Alexa. This two-way interaction can be beneficial for the insurance industry in both sales and customer service or support.
THREE MAJOR APPLICATIONS
Actuarial applications find a use for these technologies in three significant areas. The first is establishing rates or premiums used in insurance, called ‘ratemaking.’ This process involves determining ‘loss costs’ and ‘relativities.’ While the former is self-explanatory, relativities refer to the pricing classification (class) or rating plans of insurance policies. The average rate for all risks is calculated based on the base rate of class plans. Class relativities are applied to the base rate to change the rate for a person’s risk factors.
Another application is portfolio management which includes ‘loss prevention’ and ‘propensity’ (or term/whole life insurance) analysis. Finally, you have ‘reserving,’ or the process of evaluating, reviewing, and estimating unpaid claims.
Let us look at three leading-edge use cases to explain these applications.
NORTH AMERICAN P&C INSURER: A leading North American insurer in the property and casualty business faced three challenges – dependency on individuals to apply complex rules, development effort to change rules, and high turnaround times due to manual workflows. Xceedance presented a solution providing an SME rule configurator, third-party service sanction check, clearance, and Robotic Process Automation (RPA)/API for the policy administration system (PAS). That enabled the insurer to accelerate submission and clearance.
NORTH AMERICAN SPECIALTY INSURER: A North American specialty insurer targeting executives and professionals faced operational inefficiencies, lack of insights leading to risks of errors and omissions, and longer turnaround times affecting customer satisfaction (CSAT) scores. Xceedance developed RPA to extract data from the binder, scrub it against values in the PAS, and email discrepancy reports to the underwriter. The RPA bot also updated the PAS for selected values, with the rest flowing into a manual key. This solution helped the specialty insurer optimize its policy issuance process.
NORTH AMERICAN MEDICAL STOP-LOSS INSURER: A large North American insurance company in the medical stop-loss business faced effort-intensive workflows, risk of inaccuracies and omissions, and longer turnaround times due to manual interventions. Xceedance presented a three-fold solution:
- Provided automated validation to report mismatches with reservation systems
- Developed an automated solution to categorize entries based on transaction type and premium details
- Automatically fed data to book the entries into the reservation system.
The result was that the company implemented automated ‘bordereau.’ (The bordereau is essentially a report from an insurance company to its reinsurer listing either the assets covered or the actual claims paid.)
Xceedance offers insurance solutions for actuarial and analytics needs, including enablement, advisory, and consulting.
- Our staff enablement solutions provide both part-time and full-time resources.
- Technology enablement addresses cloud-based partner solutions, in-house solutions, single sign-on, and data upload that unlocks multiple solutions.
- Pricing and growth analytics solutions focus on business planning, product launch, product maintenance, price monitoring, profitability studies, and rate adequacy.
- Reserving and claims analytics solutions focus on quality reserving, annual reporting (SAO, AOS, and AR), loss adjustment expense, and claims studies. Our data science offerings provide growth analytics, predictive model-driven pricing, claims analytics, business intelligence tools, and dashboard integration.
- The admitted market management solutions are focused on state filings, regulatory compliance, ISO circular monitoring, bureau monitoring, and statistical reporting.
As you can see, our one-stop solutions and services enable the entire gamut of actuarial and analytics insurance operations.