InsureTech Consulting: Where Actuarial Science Meets Tech Innovation

Think you can approach insurance tech challenges like any other tech problem?

Think again.

At OGC Labs, we apply actuarial problem-solving techniques to technology challenges specific to the insurance industry.

Why?

Because insurance isn’t just another industry – it’s a beast of its own.

Let me paint you a picture from a recent project:

A third-party tech company wanted to build a consumer-facing insurance product for digital channels.

Sounds straightforward, right?

Wrong.

The challenge?

Defining a lightweight MVP for a new insurance brand or product is not easy.

Building trust with consumers in the insurance world is like trying to convince a cat to take a bath.

It’s time-consuming and expensive.

That’s why you need to build an ecosystem where clients can buy policies, submit claims, and settle them online.

The driving force?

Improving operational efficiencies and reducing OPEX.

According to an MIT Sloan Management Review study, companies that excel at digital transformation are 26% more profitable than their industry peers.

But here’s where it gets tricky.

Once the scope expands, nuances can make or break your project.

Take something as simple as when an insurance policy starts.

“Let’s just start it as soon as the customer buys it,” said the team. Logical, right? Not so fast.

In the world of insurance, this seemingly simple decision can create a ripple effect that’d make a tsunami jealous.

Here’s why:

We estimate that a feature as simple as this could add up to $200,000 in sunken cost.

That’s right, a quarter million dollars for something that seemed straightforward.

Here’s how it breaks down:

1. Timezone: Even within a single province like Ontario, you might be dealing with two time zones.
2. Systems: Your data structure needs to handle time zones properly. If not, prepare for a costly overhaul.
3. Documents: Got space on your policy documents for additional timezone data? No? Then, you might need to rethink the design.
4. Wordings: Does your legal wording cover these cases? If not, lawyer up.
5. Underwriting: New start times might mean new underwriting rules. Joy.
6. Pricing: Are we pro-rating premiums for a quarter of a day if it’s purchased at 4 pm?

In large organizations, these issues span multiple specialized departments.

Now, let’s talk fraud.

According to the Insurance Bureau of Canada, insurance fraud costs Canadians well over $1 billion a year in added insurance premiums.

A simple oversight in policy start times could open the floodgates to fraudulent claims.

Our Approach

At OGC Labs, we understand the intricate dance between different insurance departments.

We pinpoint the exact problem and develop precise solutions for your specific insurance case.

We’re not just tech consultants. We’re not just insurance experts.

We’re the bridge between the two, helping you navigate the complex world of InsureTech.

Ready to transform your insurance tech without the headaches?

Let’s talk.

We promise we won’t start your consultation at 11:59 PM in a different time zone.!

References

[1] The Digital Advantage: How digital leaders outperform their peers in every industry. Link: https://ide.mit.edu/wp-content/uploads/2016/05/The_Digital_Advantage__How_Digital_Leaders_Outperform_their_Peers_in_Every_Industry.pdf?x21090

[2] Vigilance is key in fighting insurance fraud. Link: https://www.ibc.ca/news-insights/news/vigilance-is-key-in-fighting-insurance-fraud