Insurance Rating Systems are necessary for any insurance company. Without one, it would be nearly impossible to process the volume of insurance quotes and premium adjustments that come to your agency each day. All rating systems are not created equally, however. If you are in the process of choosing a rating system, keep in mind three important factors:
- Ease of use
Ease of Use
A good insurance rating system is fast and easy to implement. Very little training is needed because the system is intuitive. No computer programming skills will be needed. Some systems have the ability to import rate tables from spreadsheets, or else are browser-based, so the rates are automatically updated. Other important features are the ability to
- Save profiles and make changes to them later, without having to re-enter data again.
- Print reports, coverage scenarios, policies, and more
- Generate worksheets and side-by-side coverage comparisons
The accuracy of the system is important, considering that it directly affects your financial bottom-line. Rates that are too high can cause you to lose current and potential clients. Rates that are too low can cause your loss-to-revenue ratio to be too high.
A flexible insurance rating system allows you to add new lines of coverage, customize your own set of rating rules, and expand your client base as necessary.
Keep in mind these important characteristics as you investigate Insurance Rating Systems.