CASE STUDY
Modernization of Legacy Rating Engine
Company Background
A regional property and casualty carrier competed in several highly price sensitive markets where speed and precision in rate changes were critical. The carrier offered a broad portfolio of products across multiple states, requiring frequent updates to rating logic in response to regulatory changes, loss experience, and competitive pressure.
While the business teams were agile and market aware, the underlying rating engine had not kept pace. Built years earlier and incrementally patched over time, the engine had become difficult to modify, hard to validate, and risky to deploy. Leadership recognized that without modernizing the rating engine, the organization would continue to lose momentum against more nimble competitors.
CLIENT CHALLENGE
The legacy rating engine relied on tightly coupled code, limited documentation, and manual testing processes. Rate changes required coordination between actuarial, underwriting, and IT teams, often resulting in long lead times and frequent rework. Simple adjustments to factors or rules could take weeks to implement, test, and deploy.
Business users had little visibility into how rating decisions were calculated, making it difficult to validate changes or explain outcomes to regulators and internal stakeholders. Regression testing was largely manual, increasing the risk of defects and forcing teams to limit how often updates could be released.
As market conditions shifted more rapidly, the carrier needed a modern rating engine that supported transparency, faster updates, and confidence in every release without disrupting existing operations.
Our
Solution
Inforce partnered with the carrier to modernize the rating engine while preserving core business logic and regulatory compliance. The effort focused on decoupling rating rules from application code and restructuring them into clear, modular components aligned to business concepts familiar to actuarial and underwriting teams.
The Inforce team introduced a rules-driven architecture that improved readability and traceability of rating logic. Business rule transparency allowed stakeholders to understand how inputs flowed through calculations and influenced final premiums. Automated regression testing was implemented to validate thousands of rating scenarios with every change, dramatically reducing reliance on manual testing.
Deployment pipelines were streamlined to support more frequent and predictable releases. Throughout the project, Inforce worked closely with actuarial, underwriting, and IT teams to ensure the modernized engine reflected real world insurance workflows and could be safely extended as products and markets evolved.
THE RESULTS
Rate Updates Reduced from Weeks to Days
Modernized architecture and automation accelerated pricing responsiveness.
45% Faster Release Cycles
Streamlined deployments enabled more frequent and confident updates.
70% Reduction in Manual Testing Effort
Automated regression testing replaced error prone manual validation.
99.9% Rating Accuracy Post Deployment
Improved testing coverage eliminated production rating defects.
business Impact Analysis
Within three months of implementation, the average time required to introduce and deploy rate changes dropped from three to four weeks to less than three days. Automated regression testing covered more than 5,000 rating scenarios per release, reducing manual testing effort by approximately 70 percent and significantly improving confidence in every change.
Production defects related to rating logic were eliminated in the first six months following deployment, and release frequency increased from quarterly to biweekly without added risk. Business teams gained the ability to respond quickly to competitive pricing moves and regulatory updates, improving market agility and underwriting effectiveness.
By modernizing the rating engine and aligning technology with business transparency, the carrier transformed pricing from a constraint into a strategic advantage, positioning the organization to compete more effectively in fast moving insurance markets.