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These are companion charts that show the time and cost metrics for renewal underwriting activities for auto, liability, and property lines of business.

These charts are part of AIM underwriting models that provide time, cost, and occurrence information for a wide variety of data including the job position, department, location, business unit, process, premium value, customer segment, system/technology used, quality/re-work, and many more.

They are used in this company's underwriting management program which includes management tools for staffing models, productivity management, pricing and policy expense management, quality management, and technology cost benefit analysis to name just a few. They are also the quantitative metrics in the company's performance management program which monitors changes in key areas such as unit costs, organizational productivity, and labor expense control.

Orient Point leads management teams through two types of analyses; 1) analyzing known problems with their causes and their total collateral cost,  2) discovery analyses that uncovers problems and opportunities that are not known. In the chart below, look at Auto documentation minutes per policy at 130.1 minutes. This management team discovered how expensive and excessive this was, especially when compared to the liability and property lines. With this and other related data models this company was able to quickly reduce the average 130 minutes by 65% to 46 minutes per policy by making only a few process changes and expanding the use of technologies that were already being used by liability and property. This netted a staffing savings of more than 5 FTEs. Prior to implementing activity information models this company only had some weak anecdotal information about the Auto documentation costs. Poor management information is expensive. In this case it was costing 5 additional underwriters at a cost of over $499,000 per year.

We're insurance experts and know what insurance managers need to manage their daily fires, imp-rove their operating performance, and compete more aggressively with service and innovation. They need accurate, comprehensive quantitative information for their analyses, decision making, and change management. We deliver this new, more powerful information so that it becomes the new tools in new, permanent  management practices and programs. Leap-scale performance improvements are the result of new and better information being used to make new, better decisions and manage faster changes.

Underwriting Renewal Activity: Minutes per LOB Transactions                  
  Total Auto Liability Property  
  Hours Qty Mins/ Policy Hours Qty Mins/ Policy Hours Qty Mins/ Policy Hours Qty Mins/ Policy  
Total 105,476.5 26,298 240.6 45,140.0 6,779 399.5 8,441.0 4,962 102.1 51,895.5 14,557 213.9  
Assisting U/W questions etc 6,644.5 26,298 15.2 3,391.4 6,779 30.0 549.8 4,962 6.6 2,703.4 14,557 11.1  
Contact Help Desk 690.2 26,298 1.6 366.2 6,779 3.2 246.8 4,962 3.0 77.2 14,557 0.3  
Index Faxes 1,575.0 26,298 3.6 347.0 6,779 3.1 250.7 4,962 3.0 977.2 14,557 4.0  
Review Fax Log 2,313.4 26,298 5.3 1,089.4 6,779 9.6 343.1 4,962 4.1 880.9 14,557 3.6  
Documentation 34,958.6 26,298 79.8 14,702.9 6,779 130.1 3,167.3 4,962 38.3 17,088.3 14,557 70.4  
Meetings 455.4 26,298 1.0 152.5 6,779 1.3 225.7 4,962 2.7 77.2 14,557 0.3  
Phone Calls 6,852.6 26,298 15.6 3,457.8 6,779 30.6 556.8 4,962 6.7 2,837.9 14,557 11.7  
Risk assessment 27,800.5 26,298 63.4 11,502.7 6,779 101.8 1,286.0 4,962 15.6 15,011.8 14,557 61.9  
Renewal Preparation 11,383.3 26,298 26.0 5,962.8 6,779 52.8 721.3 4,962 8.7 4,699.1 14,557 19.4  
Review emails 2,411.7 26,298 5.5 671.1 6,779 5.9 246.8 4,962 3.0 1,493.8 14,557 6.2  
Review mail 572.8 26,298 1.3 324.0 6,779 2.9 77.2 4,962 0.9 171.6 14,557 0.7  
Training 214.1 26,298 0.5 114.5 6,779 1.0 48.0 4,962 0.6 51.6 14,557 0.2  
Underwriting Analysis 8,345.5 26,298 19.0 2,541.1 6,779 22.5 646.1 4,962 7.8 5,158.3 14,557 21.3  
                         
Underwriting Renewal Activity: $ Cost of LOB Transactions                  
  Total Auto Liability Property  
Cost Qty Unit Cost Cost Qty Unit Cost Cost Qty Unit Cost Cost Qty Unit Cost  
Total 5,502,695.6 26,298 209.24 2,353,934.6 6,779 347.24 438,995.3 4,962 88.47 2,709,765.7 14,557 186.15  
Assisting U/W questions etc 347,243.2 26,298 13.20 177,234.7 6,779 26.14 28,730.2 4,962 5.79 141,278.3 14,557 9.71  
Contact Help Desk 36,068.8 26,298 1.37 19,135.7 6,779 2.82 12,898.4 4,962 2.60 4,034.7 14,557 0.28  
Index Faxes 82,307.3 26,298 3.13 18,136.7 6,779 2.68 13,103.1 4,962 2.64 51,067.5 14,557 3.51  
Review Fax Log 120,900.1 26,298 4.60 56,934.3 6,779 8.40 17,932.1 4,962 3.61 46,033.8 14,557 3.16  
Documentation 1,826,936.7 26,298 69.47 768,374.2 6,779 113.35 165,525.6 4,962 33.36 893,036.8 14,557 61.35  
Meetings 23,798.9 26,298 0.90 7,967.1 6,779 1.18 11,797.1 4,962 2.38 4,034.7 14,557 0.28  
Phone Calls 358,114.9 26,298 13.62 180,704.3 6,779 26.66 29,100.7 4,962 5.86 148,309.9 14,557 10.19  
Risk assessment 1,452,854.3 26,298 55.25 601,129.0 6,779 88.68 67,206.3 4,962 13.54 784,519.1 14,557 53.89  
Renewal Preparation 594,891.7 26,298 22.62 311,618.5 6,779 45.97 37,696.2 4,962 7.60 245,577.0 14,557 16.87  
Review emails 126,036.1 26,298 4.79 35,069.8 6,779 5.17 12,898.4 4,962 2.60 78,067.9 14,557 5.36  
Review mail 29,933.8 26,298 1.14 16,933.1 6,779 2.50 4,034.7 4,962 0.81 8,966.0 14,557 0.62  
Training 1,677.9 26,298 0.06 897.2 6,779 0.13 376.3 4,962 0.08 404.5 14,557 0.03  
Underwriting Analysis 436,133.8 26,298 16.58 132,799.6 6,779 19.59 33,763.9 4,962 6.80 269,570.4 14,557 18.52  
                         


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