The Need for Speed: Prompt, Accurate Rating Information is Vital to Compete

The concept of speed is increasingly becoming an important competitive factor when presenting rating information for specialty insurance risk coverage. Turnarounds of weeks or days to evaluate, quote, and bind policies are simply not acceptable in today’s hyper-competitive market.

Insurance risks are diverse and ever-evolving, especially specialty insurance, which plays a crucial role in providing coverage for unique and high-risk situations. Whether it’s travel, aviation, marine, cyber, or any other specialized field, the ability to accurately assess and rate risk is paramount.

Why is it important that an insurance rating engine processes requests in milliseconds? Because reinsurers, mid and large market commercial and specialty lines companies have large numbers of complex risk items that require fast, dependable performance for rating calculations. With Majesco’s tools, pricing a 1,000-vehicle fleet takes a fraction of a second. Specifically, a schedule of vehicles and drivers with almost 500 rating inputs and outputs processed all 50,000+ computations in 138 milliseconds.  

Carriers must balance speed and accuracy to deliver precise risk evaluation, with the expectation and result of comprehensive and fair premium pricing for both the insurer and its policyholders. Let’s explore why speed is so important, how it can benefit insurers, distributors and policyholders, and how it is enabled by Majesco P&C Enterprise Rating and its optional quick-to-market generated submission portal. 

A Dynamic Risk Environment

Specialty insurance covers risks that are frequently subject to rapid changes, technological advancements, and emerging threats. These risks often involve tens of thousands of risk locations, quota share/multi-layer processing, and multi-pass rating requirements. The faster insurers can analyze and rate these risks, the better they can adapt to an evolving landscape. Speed allows insurers to stay ahead of new challenges, react promptly to market trends, and adjust coverage terms accordingly. By providing prompt rating information, insurers can demonstrate their agility and ensure that agents and policyholders receive accurate and up-to-date coverage that reflects the current risk landscape.

A Competitive Advantage

In the highly competitive specialty insurance market, speed can be a key differentiator. These types of risks often require specialized knowledge and underwriting expertise. When insurers routinely deliver on the promise of swift and accurate rating information to brokers and policyholders, they gain a competitive edge. A quick turnaround time demonstrates to all parties that the insurer is efficient, professional, and committed to meeting the needs of the client. This advantage leads to increased customer satisfaction, loyalty, and ultimately, business growth. Not surprisingly, engaging with the right technology partner who has a keen understanding of the complexity of specialty risks is key to creating and maintaining a competitive edge.

Enhanced Decision-Making

For brokers and policyholders, having access to timely rating information is crucial for making informed decisions. For many cases, there is a sense of urgency to get the right coverage quickly. But specialty risks often involve unique circumstances and intricate factors that demand careful consideration. Making sure the data-delivery technology can perform with speed and accuracy — while adjusting to potential changes in regulations — can save insurers from having to continuously update rating platforms. Majesco P&C Enterprise Rating delivers rating information in milliseconds, enabling brokers and policyholders to make well-informed choices regarding coverage and pricing. This leads to more accurate risk assessments, better risk management strategies, and ultimately, improved outcomes. 

Streamlined Workflow and Efficiency

Efficiency is a hallmark of successful insurance operations, and speed in presenting rating information contributes significantly to this important component of the user experience. When insurers can quickly generate and communicate rating information, it streamlines the workflow for all stakeholders involved in the process. Brokers can process complex applications faster, policyholders can have an instantaneous user experience, and insurers can increase the number and quality of submissions and improve their conversion rates. 

The Need for Speed Has Never Been Greater

In specialty insurance, where risks can be intricate and rapidly changing, speed in presenting rating information is vital for specialty insurance risk coverage. It allows insurers to adapt to the dynamic risk environment, gain a competitive advantage, facilitate informed decision-making, and optimize workflow efficiency. 

Insurers should consider technology partners that can not only speed up your underwriting processes, but also add precision and actionable insights. Can the technology solution expand underwriting data fields? Does the platform offer transparent access to sourcing of data? Can it be quickly customized to provide new or additional classification and exposure questions you should be presenting on the application? 

Majesco P&C Enterprise Rating embraces speed as a core principle, enabling insurers to create stronger relationships with brokers and policyholders, ultimately leading to better risk management and improved outcomes. In our fast-paced world, prompt, accurate and flexible rating information provided by Majesco is a key ingredient for success in the specialty insurance market.