Insurance Rating Engine — How to Build One That Lasts

on March 21, 2024
insurance rating engine

Rating Engines in Insurance

Insurance companies use an insurance rating engine to calculate the price of an insurance policy. The insurance premium is what the policyholder would pay to the insurance company on a regular basis. The premium includes the cost of insurance, taxes, and other fees. Rating engines streamline the application process and enable insurers, brokers, and agents to generate instant quotes for applicants. While insurance companies can use various tools and methods to build a rating engine, not all paths will lead to a rating engine that’s easy to manage and maintain.

Title Insurance Challenges

One of the largest title insurance companies wanted to build a rating engine that any of their partners could use to generate estimates. Pricing included title rates, endorsements, closing costs, recording fees, and taxes. They had attempted to build one in the past, leveraging different business rules management systems, but failed to do so due to resource restraints and shortcomings of the tools they tried. Testing, implementing, and maintaining the rating engine was too complicated and costly.

Fine-Tuning through SMARTS™ Business Apps

The insurance company turned to Sparkling Logic because of our expertise with rating engines and the lifecycle management and low-code, no-code tools provided in SMARTS™. Orchestration, a SMARTS™ capability, enables business analysts and other users to simplify and automate decision management workflows. By combining Orchestrations with Dynamic Questionnaires, business analysts can create Business Apps. These custom, easy-to-understand user interfaces enable non-technical users to easily accomplish decision management tasks. Users can do so without being trained on the SMARTS™ platform or knowing how to code.

Through the robust rules authoring capabilities in SMARTS™ and its modern technical architecture, the insurance company was able to easily build a turbo-fast rating engine. In addition, the insurance company built various Business Apps for generating test data, running simulations, and updating rules. As a result, non-technical users were able to easily test, implement, and manage the rating engine through intuitive user interfaces.

Learn more about how this insurance company was able to transform their rating engine by watching our presentation at Insurance Tech & Innovation Conference 2024.

Search Posts by Category

ABOUT US

Sparkling Logic Inc. is a Silicon Valley-based company dedicated to helping organizations automate and optimize key decisions in daily business operations and customer interactions in a low-code, no-code environment. Our core product, SMARTS™ Data-Powered Decision Manager, is an all-in-one decision management platform designed for business analysts to quickly automate and continuously optimize complex operational decisions. Learn more by requesting a live demo or free trial today.