The Challenge
Automating the CAT Modeling Service to Accommodate Increased Demand
Despite being a leading Fortune 500 P&C player, this insurer faced significant challenges due to increased CAT modeling demand.
Their CAT modeling process was largely manual and complex. And as demand was rising, increased underwriting was urgently needed to support new business.
They were spending exorbitantly in an attempt to address higher delivery costs. All the while, they were missing their target service levels. As a result, their quote-to-bind ratios, particularly of high-value CAT risk products, were becoming negatively impacted.
They knew the answer to these issues was automation. But they needed a partner to guide them through the potentially complex process of transforming CAT modeling, enabling improved broker experience – all while ensuring market competitiveness.
The Outcome
End-to-End Digitization of CAT Modeling to Exceed Service Levels
Sutherland partnered with the insurer amidst these business hurdles. More than five years ago, we aimed to adopt a transformative approach to bring back their competitive edge.
We brought our CATS assessment platform on board to model perils, including earthquakes, floods, hurricanes, hail, and terrorism. This was enabled by our team of highly skilled data scientists experienced in CAT modeling.
At the same time, by applying end-to-end automation, we could reduce the manual interventions needed to deliver needed service levels.
What’s more, implementing Sutherland solutions achieved all the delivery service level targets from day one. In doing so, we significantly reduced this insurer’s operating costs and transformed how they handled CAT modeling demand.
