Organizations embrace rules based software
By John Agsalud, DRC

Since the advent of business computing, people have sought ways to make timely changes to software applications.  Executives, administrators, and technologists alike know the difficulties associated with modifying programs.  DRC has helped to solve this problem with the implementation of rules-based toolsets in its DecisionMaker™ Suite of software products.

In a nutshell, the typical software development cycle involves a highly collaborative effort between business resources and IT staff.  The business folks define the manner in which the end product should operate, while the techies do the actual construction of the system.  Communication between the two groups is never perfect, so multiple iterations are required to develop the finished product.

This methodology works well enough when business changes are minimal after the initial construction of the software.  But if new business rules need to be adopted, or the old rules change, software changes are needed.  This necessitates going back to the old cycle, business resources defining the rules and IT translating these changes into lines of code.

The time it takes to make seemingly straightforward changes is oftentimes maddening.  After all, people make mistakes, so every time a human being touches something, a new opportunity for error would be introduced.

But what if the software could be modified without programming?  IT would not need to get involved and the process would be a lot simpler.  This is the goal DRC set out to achieve.

A product that allows business resources to define and implement software rules is the ideal solution.  Furthermore, if the rules are developed using tools with which these business resources already employ heavily in their normal course of work, efficiency can be greatly improved.  Admittedly, this is a concept that has been in existence for quite some time.

Concepts, however, are easy to develop; it’s the implementation that counts.  DRC has developed a tangible, viable solution that satisfies stakeholders.

Throughout the DecisionMaker Suite of software products, business users are empowered to immediately implement and/or modify business rules.  For example, the DecisionMaker Rating solution starts with standard Microsoft Excel spreadsheets as the rate modeling tool.  Because Excel skills are pervasive throughout the insurance industry, this approach is welcomed by just about everyone. 

Rates and rating algorithm changes are made by business resources via spreadsheets.  The same goes for the often updated underwriting rules.  Both of these functions are performed by the actuarial or underwriting departments. 

While product managers still need time to develop rate plans and the QA staff needs time to test them, the IT department’s involvement, once thought of as a bottleneck to new product development, is significantly reduced.   After the changes have been thoroughly tested, they can be moved into production with relatively little assistance from the IT department.

This approach can be taken even further.  User interfaces can also be generated from spreadsheet-based templates.  Combined with rating engines or other similar logic, entire applications can be configured using this same proven model.  With just a little involvement from IT, a robust application can be brought on line.

DRC has introduced the Extended Lines Technology (ELT) tool set for its DecisionMaker end-to-end policy administration system.  This expanded tool set enables quick and automated development for new lines in both the personal as well as commercial space.  ELT is ideal for special lines of business, such as Yacht, Special Events, Hole-in-one, and Pet.

ELT offers the ability to define the user interface for data collection and display purposes, define lookup and rating calculation, and build the entire product package with simply a solid understanding of spreadsheet processing.  These new systems require little time or effort to create, allowing for the software for new products to developed in days rather than months. 

Traditionally, low volume lines of business do not get the needed attention to become profitable ventures.  The resources required to develop the product and ensure the infrastructure was in place to administer the business was simply too daunting.  But, with DRC’s tools-based approach, targeting niche markets has become a viable and affordable option for insurers.  It allows carriers to quickly bring new products to market, while focusing efforts on the larger components of the business.

This shift from IT programming to business control has been well received by both ends.  Business users no longer have to wait for IT to define rate changes and rules.  They have welcomed the responsibility and control over their rating and rule changes.  IT users are appreciative of the management and security tools that provide the control over the production system, without the responsibly to make all of the detailed changes.  This new division of work is much more aligned with the core competencies of most insurance companies.