Connecting the Business & Technology Communities
Are Multiple-CAT Model
Methodologies Too Risky?
Policy Administration Systems
As all manner of natural calamities wreak havoc around the globe and
batter balance sheets across the insurance industry, the issue of how
insurers model for catastrophes is coming under increased scrutiny from
regulators and rating firms.
While still relying on the “Big Three” catastrophe modeling firms
for help, insurers such as Allianz, Farmers and Zurich are increasingly
looking to blend output from disparate models or augment them
with data culled from a variety of internal and external sources. Yet,
when it comes to catastrophe models, more is not necessarily better.
Indeed, employing a multi-model/data approach is replete with risks
of its own, such as the chance that the models will offer contradictory
results. Thus, insurers need to remain cognizant of the strengths and
weaknesses of competing models to ensure maximum efficacy.
Erie’s Scientific Approach
to Customer Experience
Shifts in technolo�y and consumer preference are forcing insurers to interact directly with their customers on a more intimate and constant basis. To
meet this need, some insurers, including Erie Insurance, are turning to a
new scientific approach called user-centered design methodolo�y, which
provides deeper insight into customer satisfaction.
Yet, as Erie Insurance’s director of user experience, Richard Warnaka,
found out, this methodolo�y can present challenges. But, he and his team
took some smart steps to avoid the pitfalls.
In an INN interview, Warnaka discusses his line of attack, from analysis, design and usability testing to his ability to marshal the resources and
quantify the results.
Insurers Use Technolo�y
to Take the Wheel
Insurance industry research estimates 40 percent
of claims are a result of crashes due to distracted
driving. And, with more than 70 million Americans now owning smartphones, the issue has
become a major concern among property/casualty insurers.
While technolo�y certainly helped create
the problem, it can now play a vital role in
helping to solve it. For example, telematics and
a number of new GPS technologies now are available
to assist insurers seeking to enforce compliance to
distracted driving policies.
Don’t start the move to a new policy administration
system without checking off these seven essential
functions/capabilities. page 12