Polaris RTE Overview
Introduction
The ProductWriter® Run Time Environment (RTE) is one of the two key components of the Polaris software which supports the standards for the implementation of electronic commerce in the insurance industry, the other being ProductWriterâ. It is effectively a rating engine although it also provides some other facilities.
ProductWriter®
ProductWriter® provides insurers with a means to specify insurance products, and an environment in which such products can be implemented within a wide range of user’s systems such as broker packages, web sites or the insurers back office systems. As the use of ProductWriterâ, together with the Data Dictionaries which drive it, ensures products comply with a standard definition format it enables products from multiple insurers to be pulled together into a single group which can be run against one set of data input to provide multiple quotations.
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Diagram #1. The ProductWriter® Insurer Toolset and the Run Time Environment
Run Time Environment
The purpose of the RTE is to make it possible for insurers’ products, specified by means of the ProductWriter® tool set, to run under the control of a suitably configured computer system without the need for programmer intervention. Such a system might exist in a number of environments eg.
As a broker software vendor’s system, running in a broker’s office. It could obtain comparative quotations from a wide range of insurers, print policy documents at the point of sale, and format EDI or XML messages.
As a system running on an insurance company’s mainframe to perform a number of functions of benefit to the insurer – see below for details of possible usage.
As a market modelling tool, running on an underwriting department’s workstation to forecast the impact of product changes.
As part of an internet system providing
quotations to users of standard browser software.
By using ProductWriter® insurers can prepare files that together form a complete definition of each of their products. The files contain coded specifications: of rating groups, tables, underwriting rules, calculations, printed forms and EDI messages requirements.
The RTE consists of a set of software modules which a host system can call to process insurer products created by means of ProductWriter. Through a standard Application Programming Interface (API), the host system can access the files that hold product specifications and the Polaris data dictionary: in order to validate and store input data, execute underwriting rules, perform underwriting calculations, access the results, produce forms and build an output file which can be formatted into an XML message or, using the Perwill software, create EDI messages.
The RTE has been designed to minimize its impact on the host system, and to be as portable as possible across a wide range of hardware and software platforms. Versions of the API already exist for a wide variety of operating systems. Additionally the RTE also provides a choice of access with the provision of an XML message interface which executes total business transactions, see Polaris XML Support. Because it has access to a run-time copy of the data dictionary, the RTE is not restricted to a single line of business; the same software modules can handle any business line for which a data dictionary exists
The diagram below shows a typical system configuration using the RTE, in this case a broker software vendor’s quotation system.
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Polaris Run Time Environment Potential Applications and Benefits for Insurers
Application |
Benefits |
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1. |
Enhance renewal retention rating by using extra data sources.
Polaris has developed tools which would allow an insurer to supplement the standard market dictionaries and so offer rates and conditions which are not otherwise available. This approach is appropriate for insurer-generated renewals.
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- allows exploitation of extra data whether from third party sources or from insurer’s own database - permits fine tuning of underwriting using extra information - could be used in conjunction with 4 and 5 below |
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2. |
Change rates rapidly on insurer-generated renewals.
Insurer could react rapidly to changes in renewal retention patterns by amending ProductWriter rates in-house.
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- protects renewal book - allows rapid reaction to market developments - control retained by business, not IT - allows insurers to experiment with niche markets cost-effectively
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3. |
Ensure compliance with underwriting policy.
As underwriting becomes more statistically sophisticated, it is important to ensure that the subtleties in product rating are being properly implemented in software house broking systems, whether these are Polaris-based or not.
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- supports prudent business practice - ensures errors in scheme implementation are detected early – errors can arise for various reasons, including wrong loading of schemes by the broking software house and through schemes interacting at run time - provides information about data/case quality - removes audit load from mainframe (frees-up host cycles) and so lowers costs.
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4. |
Generate new business by offering preferred brokers customised products from a centralised site.
The general trend is for insurers to offer products with enhanced features to their chosen brokers. The RTE allows this to be done either over a network, eg the Internet, or by giving brokers a stand-alone quotation system supplied by the insurer on, for example, CD. In this model it is assumed brokers would retain their own back-office system.
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- supports valued sources of business by allowing the insurer to offer products which recognise the varying merits of different channels - permits rapid introduction of new products - ties-in key brokers via superior product offerings and engenders loyalty - allows launch of new point of sale products without involvement of software houses or other third parties - utilises existing ProductWriter skills in product building - could be applied for a single business class or for a number of insurance types.
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5. |
Provide intermediaries with full system functionality.
Insurers may wish to offer selected intermediaries access to a complete insurance system. The RTE can provide the rating functionality for such a solution.
In this model the intermediary would not have his or her own back-office system but would rely on the insurer for such functionality.
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- can allow the insurer to absorb tasks such as providing systems thus allowing the intermediary to focus on selling and servicing business - ties-in sources of business - can be used for non-insurance specialists or other intermediaries prepared to link exclusively to an insurer - allows economies of scale via central provision of functionality. |
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6. |
Sell more insurance by distributing directly to the public via new technology channels –eg the internet.
The Polaris RTE is already in use in some major internet insurance sites. |
- provides a cost effective approach to new distribution channels - preserves existing back office investment - allows rapid implementation of functionality - supports rapid insurance product introduction/amendment - allows multiple usage of same product definition in conventional and new technology channels
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7. |
Improve existing legacy systems cost-effectively by placing the RTE on staff desktops. This allows insurers to avoid the high costs of upgrading legacy systems.
Replacement of legacy systems is expensive and often difficult to justify in business terms. Use of an RTE-enabled system would allow an insurer to update the format of the desktop presentation of information, whilst avoiding expensive upgrades.
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- preserves existing investment in back-office systems whilst enhancing the rating functionality available to branch and head office staff - provides single product definition using industry standard approach. The ProductWriter definition can be used both for distribution to broking software system vendors and for own staff usage - can allow introduction of strategic front-end based on modern desktop technology – eg Windows - allows rapid implementation of new functionality - avoids the high cost of extensive legacy system upgrades - supports use of laptops for sales and servicing - allows more rapid insurance product implementation than via legacy systems alone - can provide enhanced management information |