Configure the Lines of Business

In many countries, insurers must register their Lines of Businesses (LOBs) with their insurance supervisory authority and make insurance offers according to their authorized LOBs. A Line Of Business (LOB) is a general classification of business used by the insurance industry. It has a regulatory and accounting definition - such as Fire, Motor, Personal Accident, or General Third Party Liability, and meets a rather rigidly defined set of insurance policies. Consequently, insurers cannot establish policies outside the scope of their registered LOB. Besides that, some insurance companies might have multiple authorized LOBs, depending on how many types of insurance they want to sell.

This is where the Insurance Product Factory comes into play: the solution has an inbuilt feature, which allows you to create and manage classification items, and hierarchies. Once defined, a classification can be attached to a product, and then the policies based on that product further inherit the same classification.

Create Lines of Businesses

The Lines Of Businesses functionality allows you to build your own LOB nomenclature, according to your activity, with the following levels of granularity:

  • Class of Business - E.g.: Property, Casualty, Life, Health;

  • Category of Business - E.g.: Personal Lines, Commercial Lines;

  • Line of Business - E.g.: Building, Content, Motor, Travel, Health;

  • Line of Business Subtype - E.g.: Individual Health.

To configure your Lines Of Business, follow the below steps:

  1. Navigate the main menu to Product Factory > Product Configurator > Lines of Business. The Lines of Businesses page is displayed, with the following grids: Class of Business, Category of Business, Line of Business (LOB), and Line of Business Subtype.

  2. Click Insert in the Class of Business grid, to create a new record.

  3. Input the details of the class of business.

  4. Click Save and Close. The record is displayed in the Class of Business grid.

  5. Click Insert in the Category of Business grid, to create a new record.

  6. Input the details of the category of business, and choose the Class of Business.

  7. Click Save and Close. The record is displayed in the Category of Business grid.

  8. Click Insert in the Line of Business (LOB) grid, to create a new record.

  9. Click Save and Close. The record is displayed in the Line of Business (LOB) grid.

  10. Click Insert in the Line of Business Subtype grid, to create a new record.

  11. Input the details of the line of business subtype.

  12. Click Save and Close. The record is displayed in the Line of Business Subtype grid.