Rajesh Narayan, VP of Product & Underwriting at ValueMomentum

Current challenges can be broken into two, if you will. One is the process-related challenges and the fragmented nature. So, effectively, if you think about how pricing and rating is done today, pricing is defined by the actuaries through modeling and then brought into rating systems — and rating systems are fragmented, multiple rating systems exist, sometimes spreadsheets. And that needs to be manifested through all the way to get to market, which means that it takes longer to get to market. So, that approach is fragmented. That is the one problem.

The second problem is the business problem where this fragmented approach creates speed-to-market issues, plus also no way of looking at the simulation of the pricing impact on retention and profitability. And if you do not have a fast speed-to-market, the modeling you may have done is no longer relevant by the time it gets to market. So, there might be a lag between how you’ve modeled it versus how you’ve deployed it.