Transforming Excel-Based Rating Workbooks into Modern Insurance SaaS Platforms
An Introduction Excel — Good, Bad and Ugly
Insurance companies have long relied on Excel for a variety of critical operations, including the development and management of rating workbooks. These Excel-based systems, while flexible and accessible, present significant challenges in terms of scalability, efficiency, and accuracy. As the industry moves towards digital transformation, there’s a growing need to migrate these traditional processes to modern, scalable Software as a Service (SaaS) platforms. This use case explores the transformation journey, focusing on the transition from Excel-based rating workbooks to a modern insurance SaaS, facilitated by technologies like coherent.global Spark.
The Excel Dilemma in Insurance Rating
Rating in insurance is a complex process involving numerous variables, calculations, and regulatory considerations. Insurers use Excel workbooks to manage these complexities, but this approach is fraught with issues:
- Error-Prone: Manual data entry and formula adjustments in Excel increase inconsistency and the risk of errors, which impacts pricing accuracy and risk assessment.
- Lack of Scalability: Excel struggles with large datasets, limiting the ability to process large numbers of policies or complex scenarios efficiently. We have all had workbooks that tak 15 minutes to recalc.
- Difficulty in Collaboration: Excel’s file-based desktop nature complicates collaboration among teams, leading to version control issues and inconsistencies.
- Integration Challenges: Integrating Excel-based rating systems with other digital platforms (e.g., customer portals, CRM systems) is cumbersome and often requires manual intervention.
The Transformation to Modern Insurance SaaS
The transition from Excel-based rating workbooks to a modern SaaS platform involves several key steps, facilitated by technology solutions from Coherent.Global :
1. Digitization of Rating Logic: The first step is converting the complex rating logic encapsulated in Excel into a digital format that can be understood by modern systems. Coherent.Global Spark automates this process, accurately translating Excel formulas into executable code objects and API endpoints.
2. API-First Approach: Transforming rating logic into APIs enables seamless integration with other systems and platforms, including internal data warehouses, CRM systems, and external partner platforms. This approach enhances data flow and accessibility, supporting more dynamic and real-time rating processes.
3. Microservices Architecture: By adopting a microservices architecture, insurance companies can ensure that their rating system is scalable, flexible, and easily updatable. This architecture allows different components of the rating process to be developed, deployed, and scaled independently.
4. Cloud Deployment: Hosting the transformed rating system driven from Excel Workbooks on a cloud-based SaaS platform ensures scalability, reliability, and security. Cloud platforms offer the elasticity to handle varying loads, from daily operations to peak periods during policy renewals or promotional campaigns.
5. Automated Testing and Compliance: Modern SaaS platforms facilitate automated testing of rating logic and compliance checks, ensuring that rating systems remain accurate and adhere to regulatory standards.
Benefits of the Transformation
Just a few of the benefits but they all relate to lowering costs and increasing the speed of deployment of new products and new product innovations and insurance. They make the center piece of any business case analysis and deploying this type of software in your insurance enterprise
- Increased Accuracy and Efficiency: Automated processes and reduced manual intervention minimize errors and improve operational efficiency.
- Scalability: Cloud-based SaaS platforms can easily scale to handle growing data volumes and complex calculations without compromising performance.
- Enhanced Collaboration: A centralized platform with version control and access management supports seamless collaboration across teams and departments.
- Improved Customer Experience: Faster and more accurate rating processes embedded in to quotes abd proposals enable insurers to offer competitive pricing and personalized products, enhancing customer satisfaction.
It’s time to Transform
The transformation of Excel-based rating workbooks into modern insurance SaaS platforms represents a significant leap forward for the insurance industry. This transition not only addresses the inherent limitations of Excel but also unlocks new opportunities for innovation, efficiency, and growth. By leveraging technologies like Coherent.Global Spark, insurance companies can modernize their rating processes, paving the way for a more dynamic, data-driven future.
Rob Tyrie is an advisor and technologist in the insurance industry for the past 3 decades. He is the former global lead for insurance at Salesforce.com and has started or grown more than 15 software companies in his career. He is also a founder of The Grey Swan Guild an International Virtual Think Tank. A software designer and programmer by training, he helps build out big business programs that work.
He lives in Toronto and explores the world in his Jeep and ChatGPT.
