Introducing Premium Reporting: Create usage-based insurance products with ease
July 22, 2020
With our new Premium Reporting feature, it’s now easier than ever to create usage-based insurance products on Socotra. In today’s world, “pay as you go” policies are becoming more and more popular for insurers and policyholders alike. Socotra’s new Premium Reporting feature can now natively support billing models for any UBI policy scenario, including:
Workers’ compensation where payroll changes on a monthly basis.
Automobile insurance for fluctuating driving patterns in mileage-based policies.
Commercial policies for varying fleet sizes.
The Premium Reporting feature can also support loss-sensitive plans, primarily for commercial lines, where the insurance premium adjusts according to the insured’s past loss history.
There are two main billing models in the insurance world: prospective and retrospective. In prospective models, a policy is sold on a time basis and the premium amount is known upfront. In retrospective models, the premium is based on actual usage in a given time frame and billed after the fact. These are often referred to as “pay as you go” policies because the billing is based on actual experience during the policy term.
To date, Socotra has natively supported prospective billing models, providing insurers the means to bill policyholders in advance. But what about “pay as you go” or usage-based policies, for workers’ compensation, automobile policies, and commercial policies? With the release of our new Premium Reporting feature, insurers can now calculate premiums retrospectively. There is one invoice per premium report, generated at the time the report is issued, rather than a schedule of invoices delivered upfront.
To configure Premium Reporting for an insurance product in Socotra’s Configuration Studio, select the desired product from the Home page, then select ‘Premium Reporting’, then ‘Premium Reports’, and select ‘Add New’. After naming the report, you can add documents, fields, and configure the specific calculations.
Learn more about how to configure Premium Reporting in our public documentation.
Socotra’s Premium Reporting feature results in a much simpler workflow that allows for faster implementations, cleaner and clearer data, and streamlined billing improvements for both you and your customers.
To learn more, fill out this form to request a demo or speak with a member of our team.