Client case study: UK specialist startup provides complex life insurance quotes four times faster with new automation

The challenge

An ambitious start-up life insurance consolidator wanted to be able to provide complex quotes faster than the competition. However, its underwriting models were formulated in Excel. This was problematic for two reasons. First, the models took so long to run that brokers were frustrated with the wait for quote results. Second, considering the known room for error within the program, the insurer knew that it had to develop a more secure and manageable model to meet regulator standards for solvency compliance.

Ideally, the client wanted a completely automated quote process that would provide underwriters with full access to the data and a simple means of interaction and control of the model. The key goals were:

• A continuous workflow process for underwriters
• A secure database that systematically uploads and downloads information and retains historical quotes produced multiple times for individual lives
• Complicated, specialized modeling capability with access to the underlying formula
• Tools that easily extract data and populate reports for management

If you’re like other life insurers in this situation, you might have thoughts like:

“Our underwriters need quotes faster to do their job well.”

“We need more sophisticated tools that help us reach target dividends for shareholders.”

“We need to move beyond an Excel-only model to perform more complex calculations that will ease remaining solvency compliant.”

The approach

Milliman Mind expedites quotation automation with the following guiding principles:

Error reduction

When new data is imported into Excel models, it is common to forget to extend rows or confirm that formulas are pointing to the correct part of the grid. Milliman Mind solves this issue by providing new functions to Excel, extending the range automatically, and reducing risk of error.

Transparency

Milliman Mind is auditable, which means that if a trainee makes a mistake in the model, you can trace and correct the error. Rest assured that underwriters, managers, and regulators alike can review models and reports with confidence.

Manageable modeling

In Milliman Mind, when you want to undo something you did five operations ago, you don’t have to undo the last four to get there.

Faster results

Brokers need to access quotations quickly in order to maintain a strong business. Even with complex life insurance, Milliman Mind’s cloud-based platform automates the process in a fraction of the time that Excel-based models can compute.

The solution

By using Milliman Mind for their modeling upgrade, this specialty insurer was able to offer quotes four times faster. Furthermore, by developing an API to facilitate communication between a secure database and Milliman Mind, underwriters gained full access to the data and the model management capabilities they craved. The API fully integrated into the startup’s system, meaning that the full model run could be controlled remotely, and brokers could retain full audit information on multiple iterations of quotes. These enhancements to infrastructure now position the startup company for confident growth in the marketplace.

Learn more about what Milliman Mind can do for you, here.