Significant innovation is occurring in product management in the insurance industry. Carriers are looking to grow, differentiate themselves, navigate the regulatory environment, and do all of this efficiently.

The most innovative carriers focus their product management efforts on unique products such as behavior-based products or products with embedded services. Multivariate rating algorithms are being used and product managers are using predictive analytics as a key tool in providing pricing guidance for books of business. Smaller carriers are focusing on managing their rates more efficiently, looking for speed to market with easy and fast updates of rates and algorithms. All carriers are increasingly expanding channels and providing online rating capabilities both to agents and increasingly to policyholders.

Each of these trends creates a potential reason to use an external rating engine.