Multichannel Pricing System at ASSU 2000
Major challenge: digitization
The ASSU 2000 Group is a French network of insurance brokers with 400 agencies and more than 500,000 customers. It offers insurance services in the fields of automobile, motorcycle, home and health as well as services in the fields of house mortgage renegotiation. In 2014, ASSU 2000 started its search for a new global pricing system to respond to some key challenges: its new distribution channels were increasingly digitized, it faced a rapidly changing competitive environment marked by price transparency and policies that had to be flexible enough to adapt to a range of factors. Consequently, ASSU 2000 executives decided to look for a new rules-based pricing system.
Rules-based multichannel pricing system
When ASSU 2000 and ACTICO met, the insurance broker had been using an in-house pricing system for 10 years. The application was a complicated and cumbersome system with high maintenance costs. Integrating it with other applications was very difficult and the system was plagued by performance, scalability and reliability problems.
ASSU 2000 defined some key requirements on the multichannel pricing system:
- First, the system had to be stable, scalable and fast with high-performance execution capabilities.
- Second, it should have a state-of-the-art architecture. In other words, the architecture had to be open to other systems, because a number of critical applications communicate with the multichannel pricing system.
- Third, it had to support a uniform pricing workflow, including all of the necessary modeling, execution and monitoring tasks, while at the same time offering full traceability and auditability to satisfy the new Solvency II legal requirements.
- Fourth, it had to be user-friendly to enable business users like marketing professionals to maintain their pricing models themselves without any programming skills.
Ease of use & high performance – ACTICO stands out
ASSU 2000 employees were evaluating business rules management systems (BRMS) from all of the major commercial and open source vendors and decided in favor of ACTICO Rules. "What impressed us most was the ease of use and the high performance of ACTICO Rules“, says Huxi Li, the application architect at ASSU 2000 in charge of the global pricing system.
With ACTICO Rules at its core, the global pricing system went live in January 2016 and has not been taken offline once as of the publication date of this story in May 2016, setting internal company record at ASSU 2000. Even during spikes in activity, execution is stable and reliable. The most complicated pricing situation takes about 150 milliseconds, a fivefold reduction compared to the previous application.
Besides meeting the technical requirements, ASSU 2000 was impressed by the system’s intuitive modeling capabilities and emphasized the high level of user acceptance. From the beginning, marketing specialists were in charge of maintaining pricing models in the form of flow rules and decision tables.
Benefits of the multichannel pricing system
"It's a pleasure to model.“
Huxi Li, Application Architect, ASSU 2000