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TOKIO MARINE HCC LEVERAGES INRULE TO TRANSFORM LEGACY RATING AND UNDERWRITING
PLATFORM



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Overview

Tokio Marine HCC is a leading specialty insurance group with offices in
approximately 180 countries, including the United States, the United Kingdom and
continental Europe with more than 100 classes of products and services.

In 2019 Tokio Marine HCC acquired NAS Insurance Services, which became Tokio
Marine HCC’s Cyber and Professional Lines Group (CPLG).

CPLG offers coverage across a wide range of fields, including cyber liability,
technology errors & omissions, employment practice liability, healthcare
professional products, miscellaneous professional liability, and turnkey
reinsurance & programs.

The Challenge

To remain competitive and compliant, CPLG must keep up with new rates and rules
for many of its insurance products.  These updated rules and rates typically
stem from policy and pricing adjustments based on incoming claims data, updates
to product ratings, new products, and regulatory changes. In fact, cyber
insurance uses hundreds of various inputs to determine the rating and
underwriting of a policy, and each input adds a layer of complexity.

CPLG’s legacy underwriting platform made an already challenging process even
more daunting. Additionally, much of the rating logic sat inside Excel
spreadsheets and word documents.  As a result, each product modification
required manual adjustments and required a tedious and time-consuming process,
especially with the introduction of new products.

With a desire to retain a leading position in the market and bring products to
market more quickly, CPLG embarked on a digital transformation journey to
overhaul its underwriting and policy administration platform.

Project Overview

Envisioned from the start as part of a greater digital transformation effort,
CPLG intended for a new underwriting and policy administration to replace the
legacy platform and no longer rely on Word documents and Excel spreadsheets.
Additionally, CPLG desired the upgrade to grow the business while controlling
costs and resources.

The team knew they wanted to implement one single platform that could
accommodate any product, no matter how complex the rules and product were and
scale with additional product lines easily.

With all this in mind, CPLG sought a decision platform that could help enhance
auto-rating and underwriting, launch new products, and advance its overall
digital transformation efforts.

Solution

After an extensive search that evaluated multiple decision platforms, the CPLG
team selected InRule Technology as the foundation for its digital transformation
and to revamp its auto-rating and underwriting process. InRule’s ability to
allow users to write rules with ease and execute decisions at scale were
significant factors in the selection.

After working with InRule’s professional services consultants, the CPLG team was
able to stand up its auto-rating and underwriting for its cyber insurance
product. The solution has two cloud-based rule applications, one for auto-rating
and one for auto-underwriting.

The auto-rating application of the platform has several components and uses API
technology to produce rate or premium for a policy, then a quote.

Similarly, the auto-underwriting side of the platform takes in hundreds of
inputs, including application inputs and those related to standards and
regulations.  The automated rating and underwriting functionality are essential
elements to the success of the platform, and both are powered by the InRule
Decision Platform. Jamie Kinsley, Senior Vice President of Technology and
Product Management at CPLG, said, “These are the key pieces of our platform
which allow us to make better decisions for our core business and build out
complex and dynamic logic with ease.”

Updating and creating new logic isn’t the only place where CPLG has experienced
a significant time savings since deploying InRule; using InRule, it takes
underwriters a couple minutes to quote.

“These are significant efficiency gains,” notes Kinsley. “And that doesn’t only
help our bottom line. Being able to get quotes to customers quickly is
essential. A lot of times, if you’re not the first to quote, you’re not the
carrier that’s going to get the business.”

Standing up the new platform only represents the first step in the digital
transformation of CPLG’s cyber unit. The new platform has the ability to connect
to third party data sources and deliver quotes to third party distribution
platforms. Kinsley stated, “This is an invaluable piece of intelligence for our
auto-rating, and we would not have been able to use such tools in our old
platform.”

Results 

Since launching its InRule-powered platform, CPLG has improved its digital
transformation journey. The insurance carrier has shifted away from its old
policy administration solution, which relied on hard-coding for the simplest of
logic changes, and evolved from using Microsoft Excel and Word to store business
rules and guidelines. CPLG can handle greater complexity, adapt more nimbly to
changes in the market, free up team members to focus on more strategic projects,
and be more responsive to customer applications, all while introducing new
products to the portfolio with ease.

The project for the cyber insurance line has been so successful that CPLG has
consistently added more and more of its products to the InRule platform. In
fact, more than 90% of CPLG now runs on the InRule Decision Platform.

Next Steps

CPLG has successfully implemented the InRule platform and will continue to look
for ways to remain a leader in insurance with advancements in technology.

> The automated rating and underwriting functionality…powered by the InRule
> Decision Platform… “are the key pieces of our platform which allow us to make
> better decisions for our core business and build out complex and dynamic logic
> with ease.”
> 
> Jamie Kinsley
> Senior Vice President of Technology and Product Management

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