Management Information Services
Management Information enables business
The key to sustainable growth is to attract and retain profitable business and to ensure that the correct tools are in place to measure these aspects:
- Profitability of insurance portfolios
- Insurance quotes and conversion rates
- New insurance policies
- Cancellation of insurance policies
Management Information should conform to the following criteria:
- Absolute accuracy
- Readily accessible
- Ability to “zoom-in” and “zoom-out” over the entire business
Brolink employs a team of highly qualified people with actuarial backgrounds to analyse all aspects of the insurance portfolios under our management.
Brolink maintains detailed records of premiums and claims on each portfolio for the entire insurance period as the basis for their statistical analysis. Profitability monitoring is therefore not only done by financial year, but also for the full period that portfolios have been underwritten by insurance companies.
Brolink’s analytical process commences with a profile analysis. This is used to formulate selection criteria to improve the quality of portfolios, as well as rating criteria to enable fair insurance premiums to be charged according to individual risk profiles. In essence each portfolio is broken down into profiles according to geographic and demographic information and insured item characteristics.
The loss experience of the various profiles is then analysed for the development of suitable insurance rates. This enables us to limit cross-subsidisation to an absolute minimum, and to offer affordable insurance premiums to individuals conforming to low risk profiles.
The analytical findings are used to evaluate the continued relevance of risk management techniques, as well as to develop new measures to cater for changing requirements.
Three levels of decision-making are used to protect the performance of the Brolink portfolio. These are:
Screening
The first decision is whether the risk is insurable. Selection criteria is utilised to prevent exposure to poor moral risk and anti-selection.
Modification
Once it has been established that a risk is insurable, it needs to be ascertained whether the probability of loss, or the potential size of loss can be reduced. For example, rules can be applied to modify client behaviour to reduce the chances of a loss occurring, or to contain the extent of the loss once it has happened.
Rating
The final step is to ensure that the risk is insured at fair insurance premiums. This facilitates growth in low risk segments, and inhibits marketing among high-risk exposures, which enhances the quality of portfolios over time.
Back to Management Information
Brolink’s Solution Seeker
Brokers have always required information to be readily available in order to identify the opportunities that will keep them ahead of the pack. Recent advances in reporting tools mean that decision makers always have access to information, to the point of overload. To stay ahead of the game brokers now require intelligent information.
It is how information is aggregated – and how “pliable” it is – that increases its value and ensures a competitive edge. To this end, many businesses are utilising the “next generation” of reporting tools, namely business intelligence. Business intelligence tools are based on Online Analytical Processing (OLAP). OLAP is a multi-dimensional view of two-dimensional data and consists of measures and dimensions. OLAP operations include:
- Slice, to provide different views or slices of data allowing for easy rotation of data;
- Dice, by choosing a range or set of data out of each dimension; and
- Drill down/up and roll up, whereby data can be disaggregated and aggregated along a dimension according to natural hierarchy.
The evolution of tools such as these has increased the potential power at the brokers’ disposal. However, business intelligence tools are merely enablers. Harnessing the power on offer comes about by combining business intelligence tools with knowledge and experience.
Solution Seeker, Brolink’s interactive and dynamic business intelligence tool, achieves this by enabling individual risk analysis. Detailed analysis used to take weeks of effort and would often have to be reworked to provide business with a different view of the analysis. With Solution Seeker, a broker can analyse his business in the meeting room. You can present any view of the business, in picture form, almost faster than you can come up with the view required.
