Specialty lines of insurance are increasingly becoming a growth engine for P/C insurers looking to add higher margin business to their standard line offerings. However, creating the right technology platform to support specialty lines business can be challenging. Out-of-the-box solutions for commercial auto and workers’ comp are readily available and speed time-to-market, whereas specialty lines often require a completely custom solution due to unique requirements for data capture and processing, business rules creation and customer-facing documentation. Read further to understand the impact of these factors on specialty lines deployments.
Data Capture and Processing
Technology providers for standard lines of business often offer a baseline product that has many of the required fields and visualization components to route the data appropriately and enable real-time decision making. However, this only works well when insurers understand exactly what data to capture. For example, workers’ comp insurers must input the latest NCCI rates, classification codes, and regulatory requirements for each state they operate in. Most specialty lines, such as covering yachts coverage or plane manufacturers, are not guided by traditional data collection standards. Insurers must decide what data to use and how to integrate with workflows. This requires a great deal of expertise on both the tech and business sides, as well as locating the right third-party data to use for obscure risk assessments. Working with tech providers that already bring third-party data and integration capabilities is crucial to establishing operational consistency.
Complete Customization of Rules
While every organization is likely to customize unique business rules for standard LOBs, there are some generic state or bureau-driven rules that insurers need adopt and update over time to comply with their filings with regulators. In specialty lines, underwriting, rating and other business rules are often entirely custom-built by actuaries and underwriters. Typically, this process is guided by a specialist that understands the business and helps determine the risk indicators and how the company should use the information. The challenge is baking the rules into the system for the organization to follow even when the specialist isn’t around to oversee each interaction. The goal for any insurer building a specialty division is to run as flexibly and seamlessly as their standard lines. This requires a platform that is fully customizable and offers codeless rule development so insurers are not beholden to outside IT departments when changes must be made.
Specialized Data Entry
Most insurers investing in digital transformation are driven by providing a quick and efficient customer experience. A large part of improving the experience is reducing how much time the applicant must spend filling out forms for the insurer or agent. Pie Insurance is a perfect example of how predictive analytics and AI can streamline new policyholder data entry during onboarding for workers’ compensation. For many specialty lines business, there can be a laundry list of questions required because of the novelty of the situation. This requires knowing where to use artificial intelligence and third-party data sources with policy administration systems to help improve internal workflow and reduce the customers’ time.
Insurers seek a specialty lines technology solution because there is enough of a market need to bring these otherwise orphaned lines of business into their core operations. Achieving this goal requires a flexible, intuitive solution and a partner who understands both the nuances of the insurance industry and what steps are needed to make it work within a technology platform.
Insurity has been working with insurers on specialty lines deployments for over 30 years to help them define fields, establish rules, ratings and visualization tools to monitor and measure outcomes. Our solution includes a comprehensive digital platform allowing clients to build their own specialty insurance user experiences by tapping into a diverse set of granular Insurity APIs, a library of 3rd party services, sample code and documentation all available through a single access point.
For more information on our Bridge Specialty and BridgeXPress Suites, specifically designed for specialty lines of business, visit our website and register for an upcoming webinar, Security Risk – The Next Insurance Industry Gold Rush.