Case Study - Third Party Insurance

This case study examines how the application of Common Knowledge has delivered significant benefits to a reseller of compulsory third party (CTP) motor vehicle insurance. Managing in excess of 350 underwriting rules, Common Knowledge has transformed an error prone and laborious process into a fully automated, consistent, and accurate operation.

Introduction

Quila Financial Services resells CTP motor vehicle insurance for two of Australia’s largest general insurers. Using a distribution chain consisting of over 300 retailers located throughout Australia, in excess of 300 quotes and subsequent sales are processed weekly. Prior to fully automating the quotation process using Common Knowledge, retailers were responsible for quotation accuracy using a manual process involving a series of paper based tables, lists and charts. This process resulted in a number of ongoing problems including financial losses due to incorrect and inconsistent quotations, excessive time required to calculate premiums and an expensive and time-consuming process of distributing premium and policy updates to more 300 retailers when changes were received.

To address these problems, an application was developed to fully automate the premium quotation process. This resulted in a number of immediate benefits across the entire CTP distribution chain.

Profitability and Competitiveness

By using Common Knowledge to represent, maintain and automate in excess of 350 CTP insurance rules, retailers can now provide customers with consistent, accurate and timely quotations. This has resulted in increased levels of profitability, competitiveness and customer satisfaction.

Rapid Change and Deployment

Using Common Knowledge, updates to premiums and CTP policy can be rapidly incorporated into the quotation system with no need for expensive software changes. These updates can be immediately distributed to retailers using electronic distribution mechanisms such as the Internet.

Improved Staff Utilisation

By fully automating the quotation process, key personnel now have additional time available to perform more important tasks. Job satisfaction levels have increased as the time-consuming and often-laborious process of preparing quotations has been reduced to a simple, accurate, reliable and intuitive operation.