IBSuite: Set up new insurance products with IBSuite Product Lab

productlabfront220 Easily launch new insurance products in hours or days through existing and new channels. The direct way to new business. Having the ability to adapt and reconfigure the insurance products in your portfolio on a regular basis has become increasingly important.

about IBA’s insurance product configuratorBroader access – narrower segmentation Educational fact sheet
Many companies and agents are successful in expanding their market reach by adding more insurance sales channels, withthe result that their ability to segment customers and prospects more narrowly increases in a linear way. By adding new affinities, you gain access to well defined and homogeneous customer segments, and by adding new insurance communication channels such as web shops, social media, or mobile apps, you gain access to valuable customer segmentation data.

You will experience that one insurance product does not necessarily fit all, even though this product already contains some flexibility, different options, sums, tariffs or clauses. The need for changes, additions and even brand new products or tariffs will appear on a regular basis. With IBSuite’s Agile Product Configuration capabilities, the creation of a new insurance product never becomes an IT project. Setting up new insurance products or creating a product variant is done in hours or few days by configuration and minor scripting only, and can be deployed without any IT downtime at all.

Flexible reusable tariffs

The tariff- and rating engine in IBSuite combines the power of the table based rating engine with the flexibility of the rule-/scripting based rating engine, giving you high performance and full flexibility at any given point in time.

Agile product configuration with IBSuite insurance softwareIn IBSuite tariffs are detached from the products, allowing several products to share the same tariff or sub-tariff if this is so required. This can dramatically decrease the complexity of your total tariff/rating setup, hence leaving less room for errors and less resources to spend on updating and maintaining the tariffs.
Tariffs/rates can be exported and imported in Microsoft Excel, allowing anyone familiar with spreadsheets to maintain and configure the tariffs.
Another key strength is that tariffs can be more than just hierarchical decision trees. You can add mathematical formulas to the tariff, which enables you to include easy configurable calculations without programming E.g.: Calculating a load factor based on a specific algorithm. Through callouts to script functions you can even invoke IBSuite functions to handle advanced calculations or invoke Web Services. For example, fetching risk parameters or even a full premium calculation from external systems or legacy backend systems.

Flexible componentized products
Sharing tariffs between products reduces the complexity considerably. Now you don’t need to maintain the same tariff or sub-tariff with loading factors by Zip-code or by car models in several places.

But not only tariffs can be shared between products in IBSuite; covers or other components of a product – even the more granular level called Premium Parts in IBSuite – can be shared between products too.

We doubt any other insurance software solutions could match IBA product configuratorThis allows for an extremely flexible way of building and configuring your products, where you over time assembles your new insurance products by reusing existing tariffs and premium parts, and likewise maintains most similar parts of the products in only one place. Just like LEGO blocks – but with the added twist, that if you need to change the colour or size of one type of block used in several products, you only haagile_2ve to change it once.

When configuring products, you also define how the product parameters should be made available through different sales- and communication channels (sales through brokers, policy administration back office screens, claim handling screens etc.). You can control access to the product parameters down to the actual field, allowing for a detailed segregation based on roles.

And as the user interfaces are dynamically built by IBSuite (without programming effort) you have the possibility to preview how the graphical user interface will look for any given channel while you are configuring the product.

Read more about IBSuite’s benefits around working with your channels in our Multi-Channel Sales description

IBSuite: Insurance Policy Administration

Naturally, policy administration is one of the core business processes in any insurance company as it both represents a large portion of the administrative costs involved, and even has a significant impact on customer satisfaction.

Process optimization
By using IBSuite for your insurance policy administration, you can significantly reduce time spent on mid-term adjustments, renewals, billing and dunning, updating customer data, cover changes etc. All policies, (along with all IBSuite data), are versionized in the system, allowing several members of staff to carry out changes to the same policy simultaneously and still maintain the full integrity of the data.

All alterations to data are automatically logged, so you can refer to the logs to determine when and why a change was made – and by whom. IBSuite also allows the user to add notes to individual policies so that all staff have important information at hand, and a better customer overview.

Case Management
If you are working with Policy Administration teams, you are probably very focused on the efficiency and accuracy of the work being done. Thus, Key Performance Indicators like number of outstanding cases, average turnaround time per case or number of cases re-opened is probably of great interest to you.

In IBSuite cases are used extensively and can be created manually or through automation either by the system itself or by an external application or service, eg. a customer support system or a website. Cases are tightly connected to the notification system and the built-in chat module. As soon as a case has been assigned, the caseworker is automatically notified by either mail, chat or on the dashboard. All case activities are registered on the case.

See IBSuite solution areas and point solutions (functionalities) to the right – including further description of our insurance software for Policy Administration.

IBSuite: Insurance Claims Administration

There are often many parties involved in a claims settlement, which can lead to lengthy delays because of the amount of communication and parties involved. For example, the customer, agent, broker, claims assessor, the claim handling clerks and sometimes a supplier for replacement of the lost or damaged goods, or a repair company.

Claims administration is an integral part of IBSuite thus allowing the claims handler to take full advantage of all data and registrations in the system. Likewise, all important claims data are accessible for other authorized users as a part of the 360⁰ customer centric IBSuite data model.

Automated insurance claim software
All tasks in the claims process – from the First Notification Of Loss (FNOL)-page or manually entered data from the telephone questionnaire, to the release of the claims reserves – can be automated in full or partially, and all actions or alterations made on the claim are logged. Documents or pictures are added to the claims case by simple drag-and-drop functionality or uploaded by the customer to further document the case. See also our product page about Claims Management for more details of the claims process.

By spending less hours processing claims your company will have more time to concentrate on other areas that are vital to the business.

Case handling can be easily outsourced to third parties who only will have access to limited customer- and policy-data to enable them to settle the claim. Because of the intuitive user interface, training can be completed in less than half a day, and there is no need to install any software locally at all.

IBSuite: Insurance Sales Management

As a sales professional, you know how important it is to have the right products and channels available at the right time, and that it is equally important to have a full overview of the customers and segments you would like to approach.
We designed our IBA platform, IBSuite, with this in mind and a special focus on building a customer centric insurance application, where configuration – not development – of new products and channels is quick and easy. We offer IBSuite as a Software-as-a-Service deployment model, which effectively shields you from costly and time-consuming upgrade projects, system maintenance and IT infrastructure costs.
See how the new intuitive and flexible Dashboards in IBSuite make your daily work easier and quicker:

Easy bundling of quotes or products

With IBSuite it is an easy process to add more products to the same quote, either as a part of a bundle that could trigger a bundle discount or as options for the customer to choose from. Furthermore, you have the possibility to define whether the products can be part of one single master policy (with one policy number for all quoted covers) or has to be separate policies – giving you a great flexibility on how you define bundles and how you want the policies to be renewed.

Effective overview of the sales process
As a sales manager, you want access to up-to-date sales performance data of
ur team and business partners. Hence, data from all sales channels under your authority are aggregated in your dashboard, giving you an easy 360⁰ view on how important metrics like Conversion Ratio or Revenue-per-Product are developing.
You can also create your own reports, export to Excel or create your own widgets for your team.

IBSuite: Micro Tariffing

Micro Tariffing is an efficient vehicle to reduce risk and calculate a competitive price at the same time. In some countries, insurance companies have controlled access to essential public registers to retrieve valuable customer and risk information, such as Social Security Numbers (SSN) or car registration numbers.

But this is only part of the need. To achieve a full picture requires access to refined datasets, an extremely open and agile product configuration- and tariffing engine as well as specialized knowledge. Only IBSuite and the IBA partner ecosystem can deliver this.
Micro tariffing, aka Micro rating, is all about narrowing down segmentation and variance at the same time, and is mostly done either geographically or demographically. Some examples:
  • ZIP-codes do not give meaningful segmentation when dealing with burglaries, if statistics show that 65% of all burglaries are committed within a distance of 500 meters from a train station. No matter the ZIP-code.
  • If the policy holder has a basement to his house, adding an extra premium due to flooding risk doesn’t make much sense if he lives on top of a hill, due to the fact that incoming water invariably comes from the sewers.
Flexible tariff engine
IBSuite’s tariff and rating solution offers a combination of strengths from the powerful table based rating engine and the flexible rule-/scripting based rating engine. The data used for micro tariffing can either be stored locally or consumed via web-services from a third party data provider – or a combination of the two.
The above example with burglaries is in IBSuite implemented directly in the tariff, meaning that it is an integrated part of this particular insurance product and not something added on the side. Consequently, any recalculation of the premium – e.g. as part of a mid-term adjustment – will automatically adjust for a changed risk profile as well.
IBA has partners delivering this kind of refined data in an increasing number of countries.

Surviving massive competition? Being agile is the answer.

Insurance companies are in a considerably increasing competitive market. Not only threatened by technologically more agile and innovative players, but also by new intruders. To cope with this, today’s insurance companies need to think outside-in.

No doubt, the insurance industry, like others, will in the coming years be tremendously influenced by further IT evolution. On a short view, the IT efforts are likely to concentrate on demands in adapting to a new digital economy.

Price competition has become more intensive due to an increasing commoditization of the traditional insurance products, so there is a high need for IT effective business processes. At the same time new insurance products and channels emerge – demanding that insurance product configurators can create, change and retire products quickly and cost effectively. Unfortunately, not many insurance IT systems are capable of delivering the needed level of support for agile product creation and omnichannel management today.

But this is far from sufficient. On a medium and longer view, the biggest changes are likely to come from a number of derived circumstances.

The buyer is in control
B2B as well as B2C customers change their buying behaviour as more digital opportunities arise. Consumers have already for years used social media, price comparison portals, search engines and other digital media out of the control of insurance companies. In an American study dated three years back McKinsey found that the average american auto insurance shopper received more than 3 quotes and considered 4.5 carrier brands before buying. (“2012 McKinsey Auto Insurance Customer Insights Research”)

Today 90% of B2B customers use digital channels for collecting information before a purchase.

When insurance is no longer the core product
It can certainly be difficult to compete with companies who are not playing by traditional rules and have different value chains. Other players had difficulties in handling Google’s arrival in the Internet- and IT industry. Others sold their technology, but Google gave it away for free, generating their revenue from advertising, not technology.

Likewise, new types of insurance companies are entering the market place, founded on the idea that the insurance policy is not necessarily the core product, but maybe even a ”loss leader” to open for more sales of a completely different product category. With the new generation of insurance systems, delivered as Software-as-a-Service, such insurance business can both be created and managed purely by outsourcing. A truly disruptive scenario for the established insurance industry.

Anders Engdal, CEO

Anders Engdal, CEO

CEO of IBA, Anders Engdal, gives a few examples, “Let’s pretend a retail chain launched a loyalty card combined with a short-term income protection insurance; the coverage amount depends on how many points you have earned on your loyalty card during the last six months before occurrence of unemployment. Most likely this would affect the buying behaviour of the policy holder. So, if the retailer is also the risk carrier the insurance product does not necessarily have to be profitable in itself, as it is likely to accelerate the turnover of the remaining business considerably. In the same way, I doubt it was to get rich from the insurance business that Volkswagen established their own insurance company.”

Insurance Business Applications (IBA) provides and implements products and solutions for the insurance industry. End-customers in 17 countries benefit from the IBSuite insurance platform, which is especially designed for the agile insurance businesses, where sales channels as well as products are in constant development, and where the buying process is very much defined by the customers.