API Driven Insurance Pricing System

Spreadsheets are used by insurers for many different activities. At Optalitix, we believe that the IP built into these spreadsheets is valuable and a core component of each company’s enterprise value. The value provided by these spreadsheets can be significantly enhanced by converting the spreadsheet into a system using a product like Optalitix Models. In this series, we will be highlighting the use cases we have witnessed, and how they add real value to insurers and their analytics d out more about Optalitix Models

Create a pricing system from a spreadsheet model

Pricing models are some of the most frequent use cases we encounter for spreadsheet use in insurance. Setting a price for a new product is often an iterative procedure, requiring a number of different changes to ensure the results meet requirements Spreadsheets are a useful tool to create a first pricing models because they are so easy to adapt, and act as a first pass at the final system. These spreadsheets are then converted into a coded system, involving significant investment or kept as single use systems inhibiting scale. Optalitix Models offers an improved solution to this. Spreadsheets are converted more quickly (in under 5 minutes) into scalable API driven systems with the Optalitix low-code solution. The benefits of this approach to building pricing systems are:

Significant reduction in build time and costs
Allows Excel developers to create systems.
Scale pricing models to allow for multiple users
Remove development bottlenecks

Optalitix created a cyber insurance pricing model that considers key risk factors for a business to determine the risk price to be charged. The model has tables with rating factors in different tabs, as you would expect from a pricing model. It took minutes to convert the models into an API that can be connected to existing websites or that broker aggregators can connect to. It can simultaneously be embedded in existing websites.