Strengthening technical control in insurance allows for more and better business.
Strengthening technical control in insurance enables more and better business.
Technical management refers to the set of activities and processes an insurer carries out to offer adequate products, manage risks, obtain positive technical results, and comply with industry regulations. Permanently reinforcing this practice with a culture focused on prioritizing technical expertise—supported by flexible and agile tools for decision-making and change management—ensures financial stability and customer satisfaction.
The main components that must be continuously managed, controlled, and improved to achieve sound technical results include:
- Underwriting: Validation and assessment of accepted risks, based on the selection and determination of contract conditions (premium, location, terms, sum insured, coverage, exclusions, warranties, etc.).
- Pricing: Ongoing actuarial analysis of pure risk rates, using models to forecast the probability and cost of future claims.
- Technical reserves management: Monitoring and strengthening proper handling of reserves regarding their timely establishment, updating, and release, which ensures the ability to meet future obligations arising from issued policies.
- Claims management: Focused on proper claims handling, fraud detection, and back-testing, which reveals the impact of risk appetite, allows scenario simulations, and supports profitable growth across business lines (products, coverages, segments, and channels).
- Reinsurance: Effectiveness of the reinsurance program and its contribution to the insurer’s solvency.
- Solvency and capital control: Auditing policies and practices to maintain financial health and comply with regulations established by supervisory authorities.
Based on actuarial data and analysis
Technical management is guided by a set of principles that frame its execution:
Data-driven and actuarial-based: Relies on the collection and analysis of historical data on production, claims, customer behavior, and market trends.
Preventive approach: Not only managing risk once a claim occurs, but also implementing preventive and predictive strategies, which impact product selection, conditions setting, and educating policyholders on best practices for safety and protection.
Regulatory compliance: Aligning with insurance sector regulations depending on the country. Additionally, it includes consumer protection standards and transparency requirements in product information and offerings.
Profitability orientation: Identifies opportunities to improve services, reduce expenses, and increase operational efficiency.
Adaptability to change: The constant evolution of the insurance environment—with regulatory changes, emerging risks, and shifting customer expectations—requires flexibility and agility to adapt, through rapid product updates, innovation, process improvements, and actuarial model adjustments.
To achieve efficient technical management, the following practices are recommended:
- Risk assessment: Using actuarial tools to identify, measure, and evaluate the risks associated with the insurance products offered.
- Development of suitable products: Based on risk assessment, design products that meet protection needs while remaining technically profitable, with clear conditions and premiums that are both competitive and sustainable.
- Application of predictive models: By using advanced statistical and actuarial techniques, it is possible to forecast claim probabilities, enabling adjustments to conditions, pricing, and profitability.
- Process optimization: Efficiency in claims management, underwriting, and policy administration is key. Leveraging technology and processes that enable automation and continuous improvement of operations.
- Monitoring and auditing: Continuously controlling the performance of products and services, carrying out audits to identify improvements and correct deviations.
Monokera, as an insurance integration platform, offers technology solutions that reduce friction in the deployment of insurance and assistance sales and after-sales processes. This contributes to generating integration models that are flexible, agile, simple, innovative, and oriented toward efficient technical management, generating positive results for both the insurers and the policyholders.
Some of the expected outcomes with our solutions are:
- Sustainable profitability: Through flexible pricing alternatives and the ability to quickly adapt when changes are required, in addition to effective management of post-sales processes and claims handling.
- Customer satisfaction: We act as a partner in the design and co-creation of insurance products and solutions, enabling innovative offerings while ensuring policyholders’ expectations are met.
- Regulatory compliance: We focus on proper technical management to meet industry regulations and strengthen the trust of supervisory authorities.
- Accessible information: Efficient technical management enables the collection and storage of large volumes of information (data lake), including structured, semi-structured, and unstructured data, serving as the foundation for predictive models aimed at improving results.
A well-executed technical management approach not only benefits the insurance company but also contributes to customer satisfaction and to the stability of the insurance market as a whole.
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