From underwriting agent data to 100% reliable information: it's possible!
From underwriting agent data to 100% reliable information: it’s possible!
Many systems currently on the market do not fully meet regulators’ data quality and security requirements. This often necessitates workarounds and human intervention, which in turn can compromise data reliability. Elbert-Jan Offereins and Arnold Barendrecht explain how, thanks to Imago Insights, being both reliable and future-proof is no longer an illusion.
The starting signal for the development of Imago Insights was a new Maas Lloyd business model. “We were a run-off insurer,” says Offereins, CEO of Maas Lloyd. “Then came Solvency II. This shook up the market considerably. That is why we chose to also work as a commercial insurer for underwriting agents.”
During the preparations for the license application, it became apparent that existing systems for processing underwriting data, such as Market Scan, no longer complied with the good practices drawn up by regulators. “As an insurer, you’re expected to be in control of what your agents do,” says Barendrecht, CEO of Bugs Business. “You need a very reliable, consistent solution for that.”
In order to operate effectively within the required data structures of regulators and re-insurers, Imago Insights was developed jointly by Maas Lloyd and Bugs Business. “Because we started from scratch, we were able to build a whole new data organization that meets all the requirements,” says Offereins.
QRT reporting and COBIT 58 controls
The claims and premium data from proxy agent back offices goes directly into Imago Insights as an XML file, which is then digitally analyzed. “You can deduce all sorts of things from it,” says Barendrecht. “For example, what the premiums are, and which claims have been made. The system also offers all kinds of tools, including QRT and reinsurance reporting.” In addition, Imago Insights already complies with COBIT’s 58 controls for information security.
Validity and future-proof
This is essential. After all, regulators require information security and high data validity throughout the entire chain.: “The underwriting services market is worth 4.3 billion euros, almost 30% of the total amount of premiums,” says Barendrecht. “If you really want to know what premiums are being paid, which claims have been settled and the level of reserves held, then you need complete data transparency.” “Validity is the key,” adds Offereins. “All (re)insurers within the EU system must send a QRT report to their supervisors. If you deviate by 5 to 10%, you have a huge problem as a sector.”
“Validity is the key”
Full audit trail
To comply with the various good practices, full traceability is also essential. “The back-office data of the underwriting agent, what is sent to the insurer, and what is reported to the regulator must match 100%,” says Barendrecht. “If there’s a deviation, we have the audit trail. This makes Imago Insights the only fully-audited solution in the market.”
Data analysis for underwriting agents as well
Underwriting agents can also analyze their data thoroughly. Their premium-claims ratio, for example, or the relationship between commissions and premium income. And because postcodes are also included in the data, customer contact can be optimized. “Suppose you have numerous customers in one province of the Netherlands, and it starts to rain heavily there,” says Barendrecht. “You could visit them or get in touch to let them know that you support them.”
Scalable for the market
Maas Lloyd included all current standards in the data organization architecture. The next challenge is to make the data logistics solution scalable for the market. To this end, Bugs Business will offer the application as a cloud solution.
Run simultaneously to compare
But is that what the market needs? “Yes!” says Offereins emphatically. “Our competitors also feel the pressure from reinsurers and regulators. We therefore give a lot of demos. Two insurers are currently running Imago Insights alongside their current applications, so they can compare the performance.”
“Our competitors also feel the pressure from reinsurers and regulators.”
Risk of monopoly?
A concern of potential users is the monopoly position. “We are indeed the only solution that is completely state-of-the-art,” says Barendrecht. “But a monopoly is not our goal. We just want to provide reliable data on premiums, claims and risks.” This will benefit the underwriting agency market, especially in the long run. That’s why the solution has been placed in the separate Bugs Insights BV entity, which will further develop Imago Insights and makes sure it remains state-of-the-art. Users have a say in this, for example through a supervisory board, or as co-shareholders. Maas Lloyd retains the original intellectual property.
In control, now and in the future
Because Imago Insights is a cloud solution, users are always assured of compliance. “Through ISAE 3402 and ISO 27001 we meet the requirements for software, with Cobit-58 those of the regulators, and we provide updates with monthly releases,” says Barendrecht. “With this triangle, we guarantee the future.” Offereins agrees. “All users can say to their supervisors that they are in control,” he says. “With a solution that is 100% within the EU system.”*
**This article is sponsored by Bugs Business.