The decision between a stand-alone rating solution and an embedded suite rater includes considerations beyond simple arithmetic calculations. Complexity of the business environment, technical system architecture, and competitive pressures also need to be factored into a final choice between rating platforms.

A new report, Future-Proof: Considerations in Choosing Rating System Platforms, examines the decisions insurers must weigh in deciding between stand-alone and embedded approaches to rating solutions. The goal for the report is to enable companies to make better choices for their needs today and in the foreseeable future.

This report offers Celent's perspective on the factors to consider in selecting a platform for a rating system. It is a follow-up to the Celent report, US Property/Casualty Rating Systems, ABCD Vendor View, 2009, August 2009, which examines the stand-alone rating vendors in the US market.

"Rating engines vary in functionality from straightforward calculators to logical hubs for insurance product environments," says Mike Fitzgerald, senior analyst with Celent's Insurance Group and author of the report. "Rating solution selection should be made based on business factors and IT considerations."