ANALYSIS - VALUE MOMENTUM
THE ELEPHANT IN THE ROOM: SPREADSHEET RATERS IN INSURANCE
preadsheets are undoubtedly indispensable in the property/ casualty insurance office! With its ubiquity and reliability, Microsoft Excel has become the favored workhorse for developing models, simulating business scenarios and even computing premium, amongst other uses!
BOUT THE AUTHOR: Abhijeet Jhaveri is Chief Marketing Officer at ValueMomentum and leads ValueMomentum’s softwareas-a-service business targeted at the MGA, Program Administrator and Coverholder markets. Abhijeet and his team works with MGAs, Program Administrators and Coverholders to deploy ValueMomentum’s iFoundry rating software with support for ISO, NCCI, AAIS and proprietary rate plans and extend these to agents, customers and employees with ValueMomentum’s BizDynamics Digital Experience Solution and App2Data ACORD forms processing Solution.
Spreadsheets are a compliance nightmare.
From time to time, when there are changes in the underwriting guidelines or in the rates, new versions of spreadsheets are put in place. Manually managing these versions can pose a risk over time, even with the most scrupulous Spreadsheets also enable speed individual and the most robust and ease of use to quickly launch process. new insurance products to test in the market place. This probably is YOU RISK LOSING YOUR the biggest advantage realized by INTELLECTUAL PROPERTY the entrepreneurial underwriters at MGAs, Program Administrators MGAs offer tailored products and Coverholders. You collaborate to specialized market needs, with the carriers and build a new i.e. intellectual property. If an product in spreadsheets and start underwriter leaves your firm, he quoting! You capture all attributes or she may also be walking out relating to the risk, holistically with your intellectual property view the risk, compute and adjust the spreadsheet with all your base premiums. rates, modifiers and underwriting IN THIS ARTICLE I WILL SHARE:
The disadvantages of spreadsheets The current insurance trends that should drive you to swiftly move away from them The 3 approaches you can take today to overcome the challenges
THE DISADVANTAGES OF SPREADSHEETS TABLE OF CONTENTS
guidelines. They impede operational efficiency MGAs are often the most efficient working units in the insurance space. Some of the most efficient MGAs track aggregate data to calculate time spent per quote, premiums written per employee and other such hard numbers. See Elephant in Room Page 26 www.chart-exchange.com