Revolutionizing Commercial Insurance: The Duck Creek Black Box Rating Integration 

Client

Our client is an independent broker and agency in California specializing in automobile insurance. This leading automobile insurer has a remarkable $4.5 billion in total assets. With a dedicated team of 4,500 professionals and a network of 8,000 independent agents, they have firmly established themselves as a force to be reckoned within the insurance industry.

Challenge

Our client recognized the need for a cohesive digital interface to streamline underwriting and producer operations across their diverse business portfolio. This interface was required to encompass workflow management, integrate seamlessly with a rule engine, and serve as the definitive source of truth for their Property and Casualty (P&C) Commercial and Personal lines of policies. To enhance pricing accuracy, modularity, and competitiveness, particularly in the face of complex coverage offerings, our client sought to modernize their legacy Excel-based rating engine. They partnered with Hexaware with the ultimate goal of seamlessly integrating this rating engine in real-time with their digital portal systems.

Solution

The Hexaware team successfully built and executed a multifaceted solution to meet the client’s needs. The solution included:

• Comprehensive Rating Implementation: We successfully implemented a comprehensive, black box rating system, leveraging an intricate coverage data model.
• Conversion and Optimization: Our team efficiently converted and optimized Line of Business (LOB) pricing by harnessing the power of the robust Duck Creek rating module.
• Modular Rating Algorithm: We redefined the rating algorithm, enabling modularity at the policy, line, location, and risk levels to enhance flexibility.
• Seamless Integration: We integrated the Duck Creek rating engine seamlessly with the digital Business Process Management (BPM) system using the versatile Anywhere API.
• Data Management: We established an efficient data management process, ensuring economical storage of data in the BPM system while maintaining the latest policy snapshot within Duck Creek for future transactions.

Benefits

The results of our solution implementation were nothing short of remarkable:

• Precision and Accuracy: Our client experienced a significant 99% gain in pricing accuracy, particularly for complex lines of business.
• Automation: The system achieved 100% automation for rating transactions in both new business and day 2 scenarios.
• Decimal Precision: Precision was maintained up to two decimal places, even after multi-layer round-offs.
• Enhanced Efficiency: New business binding processes were expedited by 75%, leading to a substantial 40% increase in revenue growth.

Our client’s decision to modernize their systems and embrace innovation has not only streamlined their operations but also positioned them for sustained success in the ever-evolving insurance landscape.

Summary

Facing the challenge of streamlining underwriting and producer operations, our client sought a digital interface that could modernize their legacy rating engine and seamlessly integrate it with their digital systems. Hexaware executed a multifaceted solution that delivered a 99% gain in pricing accuracy, 100% automation in rating transactions, and significant efficiency improvements.