Future-Proofing Insurance Pricing with Flexible, Multi-Model Capabilities: How Optalitix Models Empower Insurers
Insurance pricing departments use a wide variety of models to drive accurate pricing and stay competitive. In our extensive surveys, we found that insurers rely on a mix of Python, R, GLM, data tables, external web services, and more. Yet, despite the diversity of modern data science tools, one model type stands out as a staple in commercial pricing: Excel spreadsheets. This underscores a key need for flexibility in pricing solutions that can host or connect to any model type, without requiring costly developer intervention.
At Optalitix, we’ve built a system designed to meet this need by allowing insurers to centralise and utilise all their models in the cloud, from Python and R to Excel and beyond. This multi-model capability offers insurers critical advantages in scalability, governance, and maintenance, ensuring that pricing actuaries have all the tools they need—right at their fingertips. Here’s how we empower insurers to work faster, smarter, and with total flexibility.
1. Centralised Cloud Hosting for Improved Governance and Reduced Costs
By hosting all models centrally in the cloud, Optalitix Models ensures that insurers’ pricing data is organised, accessible, and secure. With a single, centralised location for all model types, pricing teams can easily track, manage, and update their models. This centralisation not only improves governance—offering clear oversight of who is using which models and when—but also reduces maintenance costs by eliminating the need for redundant storage and streamlining IT resources.
2. Scalability Powered by Advanced Cloud Computing
Running sophisticated pricing models often demands significant computational power, especially as data volume grows. Our cloud-hosted models benefit from cutting-edge cloud features, including parallel calculation engines capable of scaling across over 100 calculation nodes. This ensures that even the most complex models can run quickly and efficiently, giving pricing teams the speed they need to respond to market demands and competitive shifts without delay.
3. Use Existing Models Without Re-Coding
One of the greatest challenges for pricing teams is adapting legacy models built in diverse programming languages. Re-coding these models in a different language can be time-consuming, costly, and prone to errors. With Optalitix, pricing teams can leverage existing models as they are, regardless of their programming language or origin. This “plug-and-play” capability means that actuaries can continue using the models they know best, without additional development work, enabling smoother maintenance and updates.
4. Enhanced Functionality with Composite Models
Sometimes, unlocking deeper insights requires connecting multiple models to create a composite approach. For example, a pricing spreadsheet might benefit from advanced statistical functions in a Python model. With Optalitix’s Composite Model feature, you can link different models together, regardless of their type, to create powerful, multi-model workflows. This feature instantly enables enriched data and multi-model functionality, without lengthy configuration or setup, allowing pricing teams to increase the sophistication of their models and drive better outcomes.
5. Centralised Tracking of Model Usage and Performance Metrics
Knowing how, when, and by whom models are used is essential for optimising pricing operations. Optalitix provides centralised tracking for all model usage, allowing insurers to gather critical statistics on model performance, usage frequency, speed, and overall effectiveness. These insights help identify areas for improvement, optimise resource allocation, and refine pricing strategies, ensuring that every model is delivering maximum value.
6. Unified Data for Simplified Analysis and Reporting
With all data from used models stored centrally, insurers can easily access, analyse, and report on their model outcomes. This unified approach simplifies reporting, allowing actuaries to produce comprehensive analyses with ease. Centralised data also supports regulatory compliance by enabling clear, consistent, and transparent reporting on pricing activities.
7. Future-Proofing Your Pricing Models with API and AI Capabilities
Pricing departments must be ready to adapt to future advancements, including the growing importance of APIs and AI in pricing models. Our system is designed to be future-proof, automatically supporting any API model you choose to deploy, allowing insurers to integrate new data sources and systems as needed. Additionally, AI models can be deployed seamlessly on Optalitix Models and updated automatically, keeping your pricing strategies on the cutting edge of technology.
Empowering insurer and model developers
At Optalitix, we’re committed to empowering insurers with the flexibility, scalability, and power to utilise any model type in their pricing processes. By centralising models, enabling multi-model functionality, and supporting emerging technologies, we ensure that insurers are equipped to handle today’s pricing challenges—and tomorrow’s. Embrace the future of pricing with a flexible, cloud-based system that puts all the power in your hands.
