Insurance Business Formulas

The FintechOS Business Formulas enable you to reduce completion time for different types of calculations. The solution allows you to create, test, and activate your own insurance formulas (see the use cases below).

In short, you configure the formula input - an input argument, or a list of arguments, a data set (which can contain financial or non-financial data), then a formula expression. Next, you test the formula. Once finished, you activate the formula. Once active, the formula can be mapped to different calculation targets - such as a product, or a step in a customized underwriting process. Then, every time the formula is called, the Formula Engine handles all the various calculations for you and generates the desired outputs, in an accurate manner.

Hence, with Formulas, the complexity of a granular pricing engine is decoupled from the digital quotation system, or at least diminished, and kept in a dedicated environment. This helps control the cost of development and reduces the maintenance and update effort for your portfolio of insurance products.

Insurance Formulas Use Cases

FintechOS Formulas can support various business needs. But here are some examples that might interest insurers:

• create formulas for premium amount calculations, insurance peril scoring, and underwriting evaluations.

• create formulas for split calculations - calculations applied per product items (coverages), instead of the whole product, or calculations configured differently for individual or group purchases.

• create calculation (or scoring) scenarios - series of formulas, executed in steps, following a defined order index.

• create testing scenarios for your formulas - such as testing different product prices.

• create formulas for underwriting insurance perils for different products, or product items (coverages).

• create formulas for determining whether the policy proceeds further with an automatic flow or if it needs to go on a manual approval flow.

• create formulas (with steps) that produce a status or decision regarding a quote - for example, establishing whether the proposed perils are insurable, after receiving data from a third-party system.

• calling formulas from a quote configuration digital journey, thus allowing customers to configure their own insurance quote in real time.

Bring Your Formulas To The Factory

The Insurance Product Factory solution provides access to your formulas and a testing functionality without leaving the context of your product, thus shortening the time from formula to product design.

In Innovation Studio, inside every product record:

• The Premium Amount tab allows you to attach premium calculation formulas to the selected product, or its coverages (product items). For details, see the Premium Amount page.

• The Underwriting tab allows you to attach scoring/ underwriting formulas to the selected product, or its coverages (product items). For details, see the Underwriting page.

• The Test Calculations tab allows you to test your formulas based on different scenarios. For details, see the Test Calculations page.

Check the following pages to find out about:

• Attaching Formulas - for technical details about how formulas and products work together.

• Defining Premium Splits - for technical details about how the split per coverage feature works.

• Mapping Formulas - for technical details about how the data mapping works.

• Testing Formulas - for technical details about how the formulas testing works.

• Demo Formulas - for the demo formulas description.

Demo Formulas

The Insurance Product Factory solution includes also an optional digital asset containing some demo formulas, so that you don't start the creation of your insurance formulas from scratch.

The following formulas are included:

• Bankassurance_UW_Formula_Final

• EmbededBankAssurancePremiumAmountFormula

• HomeServiceBankAssurancePremiumAmountFormula

• PA_Final_Premium

• PropertyFormula

• PropertyFormula_UW

You can read about them in the Demo Formulas page. A short description of the Import Formulas digital asset can be found in the Digital Assets page.