I doubt there are many of us who aren’t wishing for more hours in the day. Running a successful business takes time, whatever its size, and today’s technologies (coupled with the time-consuming demands of legacy systems) can be both a hindrance and a help in the efficient running of operations. For insurers, accelerating speed to market, reducing costs and creating differentiated products that you can update rapidly are a priority. Unfortunately, existing systems can all too often not only limit progress but also prevent changes entirely—or result in delays and costly overruns.
In a recent survey among UK insurers that I’ve mentioned in earlier blogs, while more than half of respondents (54 percent) felt their legacy systems were serving their needs today, this dropped to 42 percent in three years’ time—perhaps hinting at concerns about coping with business needs in the near future. And while just over one in four (27 percent) said they can introduce new lines of business faster than their competitors, 15 percent said they were slower—acknowledging the difficulties in being responsive to the market.
One means to help an insurer cope with such challenges is using a leading-edge rating engine, paired with a product configuration tool—software components that offer a centralized way to define and execute the rapid calculations that make up a quote and then issue an insurance policy. In our experience working with insurance customers, codeless configuration can help carriers reduce the time to regularly update rates and factors by up to 70 percent, and reduce IT backlogs by up to 75 percent. The value of such benefits was understood by UK insurer 1st Central. Processing more than 130 million quotations and averaging around 400,000 quotes a day, 1st Central Group’s CIO, Pete Johnson, said: “Usually making a change within an IT system can be quite difficult—there can be a three month lead time. But with the Accenture Duck Creek solution you don’t need to rely on IT professionals to make the change. We add a new ratings factor into our model on roughly a monthly basis.” The UK insurer can react immediately to market opportunities, generating price changes multiple times daily if required—introducing an agility that can help accelerate growth and secure market share. “I have every faith that the Duck Creek Rating engine will scale with us as we continue to grow,” concludes Johnson.
So when you’re next pressed for time, think about updating your rating engine—you’re likely to see more of a return than some extra hours in the day. Read more about the Duck Creek Rating engine.
Contact me today to find out more: firstname.lastname@example.org.