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EPI Variance & how the DQPro Market Standard helps Carriers slash costs

Constantly changing estimated premium income (EPI) data is one of many challenges facing insurers underwriting specialty risks. When EPI varies significantly from the actual premium received it has an adverse impact on all areas of the business;  from capital modelling to underwriting performance and group reporting.  

In addition to the employee time taken to query, understand and fix the issue, there’s often a lack of an effective business process to monitor and instil accountability within underwriting teams. The end result? An ongoing, recurring data problem that continues to burn time and cost in underwriting operations.

Applying sufficient oversight to such data problems can be challenging because:

(i) data is received in tranches from a coverholder or ceding insurer at varying time intervals

(ii) submissions (in bordereau or statement form) can be of variable data quality.

(iii) It’s difficult to monitor legacy systems in real time – resulting in a delayed response

In our industry, flagging and fixing this type of data issues is often an ad-hoc, manual and error-prone process which doesn’t scale with growth.

How does our Market Standard help?

For new customers, the DQPro market standard provides a benchmark and a clear starting point from which to improve their data and controls around common market issues – with immediate results.  Meanwhile, by mapping their current DQPro controls, existing customers can identify gaps and address them quickly.  

Our latest release features contributions from 50% of the top London Market carriers (Lloyd’s and non-Lloyd’s) and comprises over 150 of the most essential market rules checks for Operations, Underwriting Governance, Compliance and Regulatory teams. 

Best of all, the Market Standard evolves and strengthens over time with continuous input from our growing network of customers whilst ensuring alignment with the rapidly changing market landscape.

Find out more: One private equity backed $3.5bn reinsurer selected DQPro to provide continuous, automated monitoring of contract data across their Global RI Operations Team, including comparing EPI vs Actual premium variance – to significantly improve the accuracy and efficiency of group financial and regulatory reporting.   Meanwhile, another $1B specialty carrier eliminated their EPI issues entirely using DQPro monitoring, rulesets and business workflow. Sound familiar?  Contact us to learn more!