In today’s fast-evolving insurance landscape, staying ahead of regulatory changes is a critical challenge for commercial lines insurers. I had the privilege of sitting down with a seasoned expert in insurance technology to discuss how innovative solutions are transforming the way insurers tackle compliance and speed up their processes. With deep insights into regulatory workflows and cutting-edge platforms, our guest sheds light on the struggles insurers face with constant updates, the inefficiencies of manual systems, and the game-changing impact of automation. We dive into topics like streamlining rate filings, preserving proprietary strategies, and leveraging technology for faster, smarter decision-making.
How do regulatory updates and ISO circulars create such a significant burden for commercial lines insurers?
Regulatory updates and ISO circulars are a constant headache for insurers because they come frequently and often with little warning. These updates can roll out multiple times a year, and each one might introduce new rules, rates, or loss costs that need to be incorporated into rating models. The pressure comes from the sheer volume and the fact that states often have their own variations—think different filing requirements or unique interpretations of the same circular. This means insurers can’t just apply a one-size-fits-all approach; they have to customize for each jurisdiction, which eats up time and resources. Missing a deadline or misinterpreting a rule can lead to compliance issues or delayed product launches, so the stakes are high.
Can you paint a picture of what the manual process for updating rating models used to look like before modern tools were available?
Oh, it was a slog. Imagine teams of analysts hunched over spreadsheets for months on end. They’d have to manually rebuild rating models from scratch every time a new circular came out. That meant re-keying data—literally typing in thousands of rate tables or loss cost figures—and then validating every single output to make sure there were no errors. If a state had a specific tweak, they’d have to adjust for that too, often without any standardized way to track changes. It wasn’t just labor-intensive; it was error-prone. A single typo could throw off an entire model, and fixing it meant starting over. This dragged out timelines and kept insurers from getting products to market quickly, often costing them a competitive edge.
In what ways does integrating ISO Electronic Rating Content into a platform like Price-It™ revolutionize the process for insurers?
It’s a total game-changer. The platform automates so much of what used to be manual drudgery. It takes the raw ISO content—think algorithms, rules, and rate tables—and converts them directly into usable models without anyone having to rebuild anything by hand. It also handles updates seamlessly, so instead of months of work, insurers can implement changes in just days. This speed lets them respond to market shifts or regulatory demands almost in real-time. Beyond that, it frees up expert teams to focus on strategy—like fine-tuning underwriting or exploring new markets—rather than getting bogged down in repetitive tasks. It’s not just about efficiency; it’s about agility.
There’s a concept called ‘deviation preservation’ that seems critical. Can you explain what that means and why it matters to insurers?
Absolutely. Deviation preservation is all about protecting an insurer’s unique sauce—their proprietary rating factors or adjustments that set them apart from competitors. These deviations are custom tweaks to standard ISO rates or rules, often based on an insurer’s own data or market strategy. Historically, updating models risked overwriting or losing these customizations, which could erode a carrier’s edge. With a platform like this, those deviations are stored as separate layers that automatically carry forward during updates. The system also flags any changes that might conflict with them, so there’s no guesswork. It’s a safeguard that ensures insurers maintain their unique positioning while staying compliant.
I understand the platform offers selective adoption of circulars. How does that flexibility help insurers manage updates across different states or lines of business?
Selective adoption is a powerful feature because it gives insurers control over which updates to apply and where. Not every circular is relevant to every state or line of business—some might only affect auto insurance in one region, for example. With this capability, carriers can pick and choose, applying updates only where they make sense for their portfolio. They can also run simulations to see how a change might impact premiums or losses before committing. It’s like a test drive for regulatory changes, letting them analyze the ripple effects on their book of business without jumping in blind. This kind of precision helps balance compliance with strategic goals.
How does the platform’s support for documentation and filing simplify the regulatory compliance process for insurers?
Compliance is all about proving you did things right, and that’s where documentation comes in. The platform builds in tools like versioning and change tracking, so every update or adjustment to a model is logged with a clear history. If a regulator asks, ‘Why did you make this change?’ or ‘What did the model look like six months ago?’ insurers can pull up exact records without scrambling. This also makes rate filings smoother—everything is organized and auditable, cutting down on back-and-forth with state departments. It’s a huge relief for teams who used to spend hours compiling reports manually. Instead, they’ve got a digital trail that supports transparency and accountability.
Looking ahead, what’s your forecast for the role of automation in regulatory compliance for commercial lines insurers?
I think automation is only going to become more central. As regulations get more complex and states continue to diverge in their requirements, manual processes just won’t cut it anymore. We’re already seeing platforms evolve to not only handle updates but also predict potential regulatory shifts using data analytics. I believe the future will bring even tighter integration between compliance tools and broader business strategy—think real-time scenario modeling that ties directly to pricing or product development. Insurers who embrace automation now will be the ones leading the pack, turning what used to be a burden into a competitive advantage. It’s an exciting time to be in this space.