Industry: Property & casualty
Challenge
As part of Milliman Product Development as a Service (PDaaS), we made several changes to the carrier’s homeowners program. We developed a multi-variate modeling technique to support a sophisticated, by-peril homeowners rating algorithm for the company to be used with a new homeowners product. Milliman also used advanced ratemaking techniques, such as those that more adequately reflected the company’s catastrophe exposure. Milliman developed the forms and policy contracts for the new homeowners product to ensure alignment between the coverage provided by the forms and the underlying rates for this new program. Milliman then produced comprehensive filing support and worked with the company to receive approval to launch the new program in states with rigorous regulatory environments.
Approach
Deploying Milliman’s Product Development as a Service (PDaaS) solution, we modernized a carrier’s homeowners insurance product. Our team developed a multi-variate risk segmentation model to create a by-peril homeowners rating algorithm that enabled sophisticated underwriting, risk segmentation, and rating. We incorporated competitive market intelligence to update the coverage forms to meet evolving consumer needs. Leveraging Milliman’s regulatory expertise, we prepared comprehensive filing support and navigated efficient state approvals.
Impact
Milliman’s PDaaS techniques and regulatory expertise enabled an expedited product development and regulatory review timeline. Milliman’s sophisticated ratemaking techniques and marketing intelligence enabled a successfully product launch with unprecedented profitable growth. Since rolling out the new insurance product across multiple states, the insurance product, the regional insurance carrier has experienced record-breaking premium written and a 30-point improvement in combined ratio.
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