New generation PROFIDA system brings improved efficiency, product development and marketing capabilities
Insurers and underwriting agencies are under increasing pressure to reduce loss ratios, particularly in the motor sector of the market.
This can be achieved through more scientific actuarial underwriting of individuals or entities and their inherent risks and risk areas.
To assist with the scientific calculation of quotes and premiums, PROFIDA’s rating engine accommodates calculations based on actuarial formulae and rules. For the premium computation it takes into account various criteria like sum insured, excess structure, group scheme, gender, age, marital status, type of vehicle and claims experience.
PROFIDA is a new generation of policy and insurance management system that has the facilities to assist with record keeping as required by FAIS, workflow automation, tasks to be created in the future and triggers for other users to obtain to-do and performance lists. Efficient document management, including storage and back-up, saves costs and time, which in turn lowers administrative and operational costs.
The system also includes functionality that is flexible and which empowers the PROFIDA User Group to make changes to their products in quick response to changing market circumstances and new opportunities.
PROFIDA not only includes typical features and functionality for policy administration, underwriting, billing, and financial accounting, but also facilitates database segmentation, marketing and client communication.
Says Daniel Putra, Managing Director of the PROFIDA Team: “This means that PROFIDA avoids ‘free text’ fields, for example for the make of vehicle, as there can be so many variations of vehicle for one make of a car that data mining is nearly impossible. Instead defined drop-down lists allow for constant formatting and data mining of the relevant fields.”
The mining of data related to items insured can give a detailed understanding of insurance books, allowing opportunities to identify new products or even areas of business which are profitable but undeveloped. Risk accumulation can be better monitored to prevent unacceptable accumulation in small areas. This can also lead to far more specific underwriting, ensuring that correct rates are always applied.
Says Putra: “PROFIDA follows the new trend to provide system-integrated facilities for segmentation and campaigns via email and mail merge. Bulk newsletters and reports can be (e)mailed to different segments or to the entire intermediary base. This gives the opportunity for insurers and UMAs to keep in touch with their brokers without having to use another CRM system.”
To provide flexibility and scalability PROFIDA is written in pure Java, which along with C++ and C# is one of the modern programming languages used in the financial services and insurance industries worldwide.
