How can insurers benefit from using ISO Electronic Rating Content?
- 1. How Can Insurers Benefit From Using ISO Electronic Rating Content? Sponsored by
- 2. Featured Presenters Our knowledgeable speakers today are: Peggy Bresnick Kendler Contributing Editor Insurance and Technology Mark Sheehan Assistant Vice President ISO James Carlucci VP Insurance ValueMomentum Adarsh Singh AVP of IT James River Insurance Co.
- 4. • Customer Experience: Competitive differentiator. • Consider Cloud: For various projects. • Collaboration: Among all parties. • Compliance: Involves every area of the organization. • Channel Proliferation: Challenges and opportunities. • Core Systems: Is it time to modernize?
- 5. ISO Electronic Rating Content
- 6. 6 Product Comparison Functionality ISO Insurance Manuals ISO IntegRater™ ISO Electronic Copyright Insurance Services Office, Inc. Rating Content ISO Rating Service® Narrative description of line-of-business rules and advisory loss costs (online, PDF, MS-Word or paper-based) • Formatted file of advisory loss costs • • • Formatted file of valid coverage limits and factors • • • Formatted file of valid deductibles and factors • • • Formatted file of valid additional rating data such as • • • classification codes, territories, legal entities, etc. Formatted file of valid form numbers and edition dates • • Technical specifications for calculating policy and coverage premiums • • Technical specifications for forms attachment logic • • Technical specifications for stat code assignment • • Technical specifications for validation rules • • Fully automated code for calculating policy and coverage • premiums Fully automated code for forms attachment logic • Fully automated code for stat code assignment • Fully automated code for validation rules •
- 7. 7 Copyright Insurance Services Office, Inc.
- 8. 8 How to Download Report http://www.iso.com/Products/Rating-Underwriting-and- Policy-Management-Systems/ISO-Electronic-Rating- Content.html Or simply email me at: msheehan@iso.com Copyright Insurance Services Office, Inc.
- 9. 9 What functionality is included? Copyright Insurance Services Office, Inc. ISO defined: – Premium Calculation – Form Attachment Logic – Premium Stat Code Assignment (ISO Full Plan) – Business Edits …with ongoing maintenance…
- 10. 10 Major Deliverables • Formatted File (MS-Excel and XML) available for upload to PAS – Required tables and their relationships, such as: • Parent-child relationships • Fields and field sizes • Keys – Valid data entry fields, such as: Copyright Insurance Services Office, Inc. • Limits • Deductibles – Valid system tables and their entries, such as: • Advisory Loss Costs • Increased Limits Factors • Classification Codes/Descriptions • Technical Specifications (MS-Excel and XML) – Premium Calculations – Form Attachment Logic – Premium Stat Code Assignment Logic (ISO Full Stat Plan) – Business Edits • Sample Test case for each LOB/state
- 11. 11 What “Base Content” is available? • ISO Commercial Lines – Business Owners – Commercial Auto – Commercial Inland Marine (filed and non-filed) – General Liability – Commercial Umbrella – Commercial Property – Crime and Fidelity – Commercial Package Policy • ISO Personal Lines Copyright Insurance Services Office, Inc. – Personal Auto – Homeowners • Workers Compensation – Bureau States – Non-monopolistic (independent bureau) states
- 12. 12 Currency of Content • LOB’s are 4 – 7 months in advance of effective date, for example: – Commercial Auto – through March 2015 – Commercial Property – through April 2015 Copyright Insurance Services Office, Inc.
- 13. 13 ISO Electronic Rating Content Delivery Model ISO LOB State ISO LOB Countrywide = Content from ISO State Manual = Content from ISO Multi-State Manual Copyright Insurance Services Office, Inc.
- 14. BOF Rule# Name RUL Primary Rule Liability Coverage Commercial Auto Vehicle Liability Coverage.Premium TAB DBTablesUsed Commercial Auto Vehicle Liability Coverage BBB Total Premium Commercial Auto Vehicle Liability Coverage COM Type Operator Value PCH Premium IFB CW1Condition IF IFM CW1 ( IFM CW1 Vehicle Type IFM CW1 Is Equal To "Truck" IFE CW1 ) IFB CW1Condition IF IFM CW1 ( IFM CW1 Trailer How Used IFM CW1 Is Equal To "Not Applicable" IFM CW1 Or Trailer How Used IFM CW1 Is Equal To "Used In Dumping Operations" IFE CW1 ) CVS Assignment Premium CVMCW1 = CVMCW1 ( Base Premium CVMCW1 * Premium ILFDeductible CVMCW1 * Liability Combined Rating Factor CVMCW1 * Fleet Factor CVMCW1 * Accident Prevention Discount Factor CVMCW1 * Hired Auto Factor 14 Premium Calculation Example Copyright Insurance Services Office, Inc.
- 15. 15 Rates & Valid Values Electronically… • Need to know the ISO Loss Costs for a specific Ratebook Release? • Create a custom file with your company’s exceptions for development. • Create a file for use with your company’s modeling tools. • Create a file for your actuaries as an analysis tool. Copyright Insurance Services Office, Inc.
- 16. 16 Road Map • ISOnet Download Enhancements - Complete • Parser 3.2.2 - Complete • XML Release Notes – 1st Quarter 2015 • Commercial Auto Structure – 1st Quarter 2015 Copyright Insurance Services Office, Inc.
- 17. 17 General • Services Model • Partners • Customers range from… – Start ups with $0 DWP – Tier 1 insurers with all lines/states Copyright Insurance Services Office, Inc.
- 18. Polling Question: Do you stay up to date with ISO content? (select one) 1. Yes, we are always up to date 2. No, we fall behind on updates due to scarce resources for analyzing and implementing ISO changes 3. Yes, on a case-by-case basis: we analyze each change, and decide whether or not to implement the change 4. No, because ISO updates aren't critical to our business 5. We not currently an ISO customer
- 19. Results: Do you stay up to date with ISO content? (select one) 5.30% Yes, we are always up to date 26.30% No, we fall behind on updates due to scarce resources for analyzing and implementing ISO changes 31.60% Yes, on a case-by-case basis: we analyze each change, and decide whether or not to implement the change 5.30% No, because ISO updates aren't critical to our business 31.60% We are not currently an ISO customer
- 20. James Carlucci Vice President, Insurance James.Carlucci@valuemomentum.com 908-531-5354
- 21. 21 Corporate overview Corporate Facts 40 Software & Services Firm Insurance & Financial Services Established in 2000 with HQ in NJ, USA Global team size: 850 100+ dedicated R&D team Insurance Carriers Served Technology solutions designed to help insurers increase momentum by improving their front office operations and increasing the collaboration between channel, field force and back office. Property & Casualty Business Focus Personal, Small Commercial Mid-market, Large Commercial Specialty, E&S, MGA Workers Comp
- 22. 22 Our Software Offerings – Front Office Focus Business Intelligence / Reporting Business Intelligence / Repository Document Management & Workflow/BPM Distribution Management Agent Portal Underwriting Workbench Rating Engine CCuussttoommeerr PPoorrttaall CCRRMM Core Claims System Reinsurance Management Billing Core Policy Admin System Disbursement General Ledger Document Creation Specialized Components www.novarica.com Rating Engine Underwriting & Portal Biz | Dynamics For Dyamics CRM
- 23. 23 Business Needs associated with rating for ISO Do they have the ISO lines we write? Lines we may write tomorrow? Do they cover territories I write in? Can we adopt ISO content changes in advance of their respective effective dates? Can we enable company deviations – rates, LCMs, algorithms – without significantly depending on IT? Can we understand implications of an ISO release and our company deviations before pushing to production? Can we enable online quoting & rating of ISO lines for back office staff and retail agents? Breadth & depth of ISO content enabled in rating engine Timely access to ISO updates Support for all types of company deviations Ability to easily asses change from past ISO version, impact on company deviation Extend online quoting and rating to back-office staff and retail agents
- 24. 24 Business Needs associated with rating for ISO Breadth & depth of ISO content enabled in rating engine Timely access to ISO updates Support for all types of company deviations Ability to easily asses change from past ISO version, impact on company deviation Extend online quoting and rating to back-office staff and retail agents BOP Commercial Auto Commercial Property General Liability Workers’ Comp Inland Marine Crime All territories ERC Release notifications Absorb Adoption by effective date ISO ERC “as-is” Rates, LCMs Rules/logic Forms logic Summary of differences across versions Book Impact - Simulation Online quoting instantly aware of ISO changes
- 25. James Carlucci Vice President, Insurance James.Carlucci@valuemomentum.com 908-531-5354
- 26. Polling Question: How do you currently use ISO content? (please select all that apply) 1. We use ISO rating factors and rules 2. We use ISO with minor deviations to ISO rating factors and rules 3. We use ISO with deviations to ISO rating factors, rules, algorithms and coverages 4. We do not currently use ISO content, but plan to launch a new line using ISO base rating factors and rules
- 27. Results: How do you currently use ISO content? (please select all that apply) 18% We use ISO rating factors and rules 24%. We use ISO with minor deviations to ISO rating factors and rules 65%. We use ISO with deviations to ISO rating factors, rules, algorithms and coverages 6% We do not currently use ISO content, but plan to launch a new line using ISO base rating factors and rules
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- 29. 29 About James River Insurance Company As-Was to a Modern Solution Current State Learnings Benefits Realized Agenda
- 30. 30 About James River Insurance James River Insurance Company operates as an Excess & Surplus carrier in all 50 states plus Washington, DC. In Ohio, policies are underwritten by James River Casualty Company, a wholly-owned subsidiary of James River Insurance Company. The home office for James River Insurance Company (JRIC) is located in Richmond, VA. We have satellite underwriting offices in Atlanta, GA and Scottsdale, AZ. The holding company for JRIC, James River Group, Inc. is located in Raleigh, North Carolina. The ultimate parent of James River Group is Franklin Holdings (Bermuda), Ltd. located in Hamilton, Bermuda. Specialty insurer Operating on an approved non-admitted basis in all 50 states and D.C. Offers creative solutions for commercial customers Falls Lake / Stonewood Ins. Operating on admitted basis Distribution through partners focused in desired industry segments Preference for writing specialty insurance policies on a primary basis
- 31. 31 As-Was to a Current Solution AS-WAS ISO updates driven by vendor schedule, Lack of visibility, control on staying up-to-date with ISO content No company specific deviations to rates and rules Limited insight in the usage of the tool. Current Solution Speed to market to launch ISO-based lines Complete independence to update, manage ISO content; configure company deviations User friendly online quoting and rating application Ability to rate A-rated class codes. Dashboard to view previous quotes by user Evaluation Process Technology leadership evaluated potential solutions to solve identified problem areas Market scan, developed selection criteria Deployed methodic project management approach to onboard solution, manage expectations and timelines internally and with the selected solution partner
- 32. 32 Current State Current State James River Operations monitor ISO Net, download most recent ISO ERC Release and upload release to iFoundry Rating Engine iFoundry Rating Engine consumes ISO ERC Release and provides a workflow, and visual representation of the changes from one release to another James River BAs work with Business Users to configure deviations to rates and rules, if so desired James River IT team supports the testing and deployment James River Underwriters have access to online quoting and rating of updated ISO rates with DealFoundry Express Users can reference all their quotes generated in a dashboard
- 33. 33 Learnings Plan for sufficient training for broad enterprise adoption Plan ahead for training and ensure that the vendor partner factor for hands-on training for each stakeholder – User, BA… Plan for adequate, responsive support to business and IT queries Account for the newness of providing business with control over taking on ISO ERC releases – expect queries from business & IT stakeholders
- 34. 34 Benefits Realized Complete independence to update and manage ISO content and deviations, reduce premium leakage and differentiate in the market Eliminates reliance on a vendor schedule to consume ISO updates Greater ability to deviate not only LCMs but also rate tables, algorithms with ability to add/modify coverages Improved quoting efficiency with quoting and rating Provided business with option to Model new ISO line with quoting and rating Ability to manage multiple companies and multiple locations
- 35. Thank You!
- 36. Questions? Submit questions to the presenters via the on-screen text box Peggy Bresnick Kendler Contributing Editor Insurance and Technology Mark Sheehan Assistant Vice President ISO James Carlucci VP Insurance ValueMomentum Adarsh Singh AVP of IT James River Insurance Co.
- 37. Thank you for attending Please visit our sponsor and any of the resources below: • www.insurancetech.com/events • http://www.valuemomentum.com/