PASS_Products

PASS_Products is the the core module of PASS_Insurance, the product configurator and rating engine

PASS_Products allows the effective evolution of your product definitions, including changes to rate tables, underwriting rules, and algorithms of all lines of business.
It improves the rating sophistication and granularity to target new market opportunities.
PASS_Products is available as a standalone rating engine, or as part of the PASS_Insurance Suite.

PASS_Products answers to IDD (Insurance Distribution Directive) and POG (Product Oversight Governance) requirements. POG is part of IDD regulation, a set of European requirements related to the manufacture, oversight and governance of insurance products, for both manufacturers and distributors of insurance products.

In 2021, PASS_Products is being reviewed that will be release in the next future. The new release will centralized configuration and modules; the architectural model will be based on micro-services; the deploy model will be the Cloud, following the cloudification process of RGI suite; the new offering will be in Saas mode.

We are currently evolving the user interface of PASS_Products towards a full-web cloud-based solution. A first release of this new version will be available in Q1 2022.

The main key enhancement will be:

- A welcome dashboard to monitor activities and identifies priorities

- Increased reusability of products components

- Modular approach to build products

- Selective deploy for specificproduct configurations

- Collaboration workflow between business and technical users for approval and deploy of products and tariffs created by business users

- Chatbot to drive entry-level users in the product configurations

PASS_Products is the core component of the PASS_Insurance Core Policy Administration System that collects all the characteristics of the Insurance products (as both individual or group policies):

• Non-Life Products: Motor, Property&Casualty, Bonds, Transports, Hail
• Life Products
• Combined Products: Multirisk, Multibranch, Life&Non-life

PASS_Products manages all product information like:

• Product composition
• Tariff rules, algorithms and controls
• Commissions, discount and special agreement rules
• Life specific features:
  • Investments: funds, types and investments profiles
  • Tax: revaluation,deduction rates, minimum guaranteed, minimum retained
  • Coupons, Unit Index and tranches
  • Maturity Options

Common elements are organized in dictionaries on a database: guarantees, assets, clauses, taxes, indexes, messages, special agreements. All the main characteristics of a product (e.g. rules, formulas, tariff parameters, guarantees) are stored in the appropriate dictionaries .

PASS_Products includes a strong actuarial engine for tariff, commission and discount calculation

The Insurance product structure consists of assets, risks, bundles, clauses and parameters that can be used in premium calculation, controls and in order to store all contractual information.

The insurance product structure is structured in "product", "tarif", "flexibility list", "commission list".

The product manages:

• Name, code, duration, companies
• Structure (section, risk, asset)
• Payment frequency
• Rounding rules, Minimum premium
• Currencies
• Special Agreements
• Operations
• Input documentsrequired for functions
• Actions and controls
• Claims needed details (damaged parts and coverages)
• Reinsurance

The tarif manages:

• Combination of factors
• Rating
• Rule
• Premium formula
• Premium type (net, gross)
• Custom formula
• Test

The flexibility list manages discounts.

The commission list manages commissions.

There is an "author environment", a pre-production environment,where to define the productrules and the tariffs and to validate the systemreaction to changes. Within this environment:

• the IT staff can create productswithin the product builder without the need to developany code; thisresults in a Product Sheet, a single template sharedbetween business users and IT specialists
• users may validate and checkautonomouslyproducts and tariffsactingasuserprofile by expertise. They can:
  • Act on configuration of commissions
  • Manage the discount repository
  • Define the exceptions on single products and single agency
  • Act on configuration of printouts (layout design, information required…)

When the business rules and the assumptionrules are defined, the Rules Engineinterprets the definedrules and makes the productavailable to the front end component.

• Easy to use interface:
  • Customized operations per userprofiles, with consequentreduction of programming, configurationadvantages and releasesthat haveonly database impact
  • Shared information in dictionaries (risks, tariffs, parameters, rules, formula, errormessages…)

• Documentation:
  • Capability to create documentation for productstructures, that can be usedashistory or validationdocument

• Massive testing:
  • Test and debug of formula and tariffs, both online and massive

• High configuration:
  • PASS_Products manages all product information suchas:
    • Product structure composition
    • Tariff rules and controls
    • Commissions, discounts and special agreement rules

• Multi-branches efficiency:
  • PASS_Products component allows to characterize the insurance products both for individual or group policies:
    • Non-Life products: Motor, Property&Casualty, Credits&Bonds, Transports, Hail
    • Life products

What Insurers say about PASS_Products:

• Lower time-to-market: the average time for the implementation of a new P&C product (from analysis to testing) has been lowered from 2 months to 1 month. The reduction of the time-to-market is due mainly to the configuration of PASS_Products(CIO Tier 2 Insurer)
• Products porfolio optimization: the flexibility of PASS_Products allowed us to simplificate the products portfolio, lowering the products number from about 150 to 50, though keeping the specificity required by the Business Direction, with benefits in terms of simplicity and costsefficiency, both for business and IT (CIO Tier 2 Insurer)
• Products evolution: PASS_Products was also the enablingf actor for the increase in products using a different, more efficient, more complete and more flexible process (Executive Director Tier 2 Insurer)