Overview

Proposal Configurator offers the ability to configure product offerings in logical bundles, covering core and optional benefits comparatively priced by level and benefit type.

Proposal Configurator complies with the Insurance Distribution Directive (IDD) and Demands and Needs Test (DNT) requirements, to deliver customized insurance propositions to customers, with clarity around breadth of coverage and the cost associated with it. The solution allows system operators to organize data for the Quote&Buy process and insurance products.

Proposal Configurator is used to display in a Quote&Bind application different offer options mainly based on the user's answers to DNT questions. So, using the answer and the proper configuration made through the Proposal Configurator solution, the system is able to create and expose suitable custom insurance offers for the client’s needs.

For example, if there are 3 DNT answers to a specific DNT question such as:

  • Option 1 (e.g. Home Insurance);

  • Option 2 (e.g. Home Assistance);

  • Option 3 (e.g. Civil Liability).

The user is able to select different combinations in the answering process:

  • Select only Option 1;

  • Select only Option 2;

  • Select only Option 3;

  • Select Option 1 and Option 2;

  • Select Option 1 and Option 3;

  • Select Option 2 and Option 3;

  • Select all three options.

The DNT questions and answers are closely related to the configuration of an insurance product insofar as the chosen options are mapped to the items of the insurance products used for the offering process.

Therefore, based on what the user has chosen, the mapping is made between the all three options displayed in the Quote&Bind application and three correlated insurance items of the used insurance products:

  • Insurance Item 1 (e.g. Home Insurance);

  • Insurance Item 2 (e.g. Home Assistance);

  • Insurance Item 3 (e.g. Civil Liability).

Utilize Proposal Configurator in conjunction with dynamic insurance customer journeys to:

  • Provide the ability to set up the Demands and Needs (DNT) questions and answers be configured to the audiences. Proposal Configurator offers the possibility to adopt digitalization to generate aligned and suitable offers to meet customer needs;

  • Present benefits, options and costs in a clear way for customers, and is Insurance Distribution Directive (IDD) compliant;

  • Configure the proposal. Combine benefits to present multiple and comparable offer cards, assisting the customer to select the best product mix and benefit levels to fit their profile;

  • Create different versions for your product.

The following sections highlight benefits and features of the Proposal Configurator module.

Proposal Configurator enables the dynamic assembly of propositions to be presented to those seeking insurance coverage, whether general insurance or life protection, at levels that can readily be compared and considered from the point of view of relevance and affordability. These propositions are formulated and presented at key stages in a FintechOS insurance customer journey, and can be stored and retrieved as required. They contribute to the interactive and inclusive user experience that cannot be delivered via the first-generation portal technologies.

It is therefore at this level that an insurer, managing general agent (MGA) or other form of distributor is able to differentiate itself from their competitors whilst satisfying IDD requirements of working within a level playing field from a product perspective.

By completing the Demands and Needs Test (DNT), the customer provides personal and financial details that are pertinent to the lines of business they are inquiring into, including:

  • Personal details relating to all family members and dependents;

  • Financial details, including income, liabilities, outgoings, assets, etc;

  • Existing personal insurance and employee benefit levels - life, health and pensions.

The information gathered through DNT is used to formulate coverage options that are aligned to the individuals' stated needs. It offers the benefit of gathering information and presenting insurance coverage options in a way that is:

  • Accurate, personalised, suitable;

  • Accessible, fair, inclusive;

  • Affordable;

  • Compliant.

Product versioning helps to differentiate the sold product at any point in time, ensuring that customers can only buy the current version of a product and make the performance analysis easier. Insurance companies constantly monitor the performance of products to ensure that they can generate the required level of profit which is the difference between net premium collected (income) and the cost of claims paid (expenses). Underwriters can adjust premium rates and coverage to maintain a balance between profitability and price competitiveness.

When creating a new version of a product that is part of, the business user can replace the used formula with a new done. As soon as the new version of the product is approved, the user can see the premium amount calculated for each card using the new formula.

New versions of formulas can also be created and attached either on a coverage or on a product, that is included in the Proposal Configurator solution. When calculating the premium amount for each card, the user can see the result considering the result of the latest approved version of the formula. This can help underwriters with resetting the rates (pricing level) for a risk based on the underlying frequency and cost of claims.