ITC DIA Europe

MavenBlue: EPM – Managing and optimising price models into industry-grade rating engines 

Written by Jolijn Schalkwijk on Mar 25, 2024

A classic problem in insurance is the conversion of actuarial pricing models into a tariff structure and rating engine that can be embedded into any policy administration, front-end system or point-of-sales terminal. MavenBlue’s solution Enterprise Pricing Management (EPM) innovates this process that often requires insurers to make unnecessarily large quantities of rules for new tariff structures, which requires a large amount of time and is often error-prone. Running pricing models in real-time delivers greater flexibility, increased efficiency and better sales/claims results. 

It’s challenging for actuarial pricing teams to manage large volumes of disparate data into potentially multiple pricing solutions, and then take a new tariff structure and build/test thousands of pricing rules which are then often uploaded into multiple distribution channels. 

MavenBlue presents a new unified data model, from which the actuary builds a model quickly and effortlessly. They can now operate from a unified environment and promote models to production in minutes without any help from IT. This model represents automation, collaboration and autonomy.   

EPM is an open platform taking all well known pricing models and it can implement any rating engine to date. MavenBlue is a SaaS company, and operates in the cloud with IBM technology. At this point, MavenBlue has 15 customers using its software in production. Current customers include names like ASR and Unigarant. 

How it works

EPM simply runs the mix of pricing models in real-time. The trick is the packaging of the pricing models into a callable API which replaces the existing rating engine.  

Data in – As part of the pricing process, actuaries use data from their own company i.e. Policy Admin System. But it also uses data from third parties i.e. Aggregators, Credit Agencies, Vehicle Database, associations etc. MavenBlue brings all this data together in the platform and enables the user to engage in the modelling process.  

Modelling – MavenBlue believes in an open modelling framework, and does not force the customer to commit to its modelling platform. Actuaries have their own preferences and MavenBlue works with customers to integrate their own models into the platform.    

Rate Making – This is where you decide what prices to use. This is often a trade-off between volume/profitability/diversification/etc. Some existing tools do enable this, but MavenBlue helps users execute this step with analytics so that they can decide what price point is right.   

Rate Execution – This is where a rate model is promoted to production. The wrapping of the model into an API is the real trick here. Most companies make the API callable, however MavenBlue uses a different methodology into which information is pushed out.  

Monitoring and Recalibration – MavenBlue has a proprietary solution which uses machine learning to compare and contrast realised performance versus expected. It suggests changes and the user is then able to make those changes. By enabling the user to make an intraday price update to ensure loss ratios, conversion ratios perform as expected.   

Why we selected MavenBlue for ITC DIA Europe  

Rick de Jager, Head of Sales will be speaking at ITC DIA Europe Amsterdam to talk about MavenBlue’s Enterprise Pricing Management Solution. Too often, pricing is static and only updated once every year or two. However, the market moves constantly, customer behaviour changes, product definition/expectations changes, and so on. Being able to quickly reconfigure/recalibrate pricing maximises results for insurers. MavenBlue’s goal is for insurers to be able to go from a pricing cycle that takes 37 weeks to one that can take less than a day.  

Who is MavenBlue?

MavenBlue is a niche software company targeting key gaps in the insurance IT infrastructure, focusing on Pricing and Balance Sheet Management. MavenBlue is a Dutch company, officially founded in 2016 by Patrick van Driel – Founder of what is now Keylane and Marcel Smith – Ex-Chief Investment Office of Fortis Insurance International.  

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