Innovating Today’s Insurance Industry

Slalom Consultant Denis Farmer

Denis Farmer

With the continued growth of motorcycle insurance for property and casualty (P&C) insurance companies, it’s more critical than ever for carriers to develop sophisticated products that ensure long-term profitability and market competitiveness. To meet this need, Slalom Consulting has developed a flexible Motorcycle Symbol File, specifically designed to help improve products, pricing, underwriting, and the loss experience for insurance carriers that offer insurance for motorcycles, snowmobiles, and ATVs.

Key Business Issue

As property and casualty insurance companies look to expand their product portfolios and combine household accounts, the need for best-in-class specialty products continues to grow. Motorcycle insurance, a multi-billion dollar industry, is no exception. As major motorcycle insurance providers continue to invest in product and pricing, technology, and underwriting sophistication, the need for the industry to keep pace has become increasingly important.

Working with our key P&C clients, Slalom identified the need in the market for vehicle data and vehicle symbol groupings. Unlike auto insurance, the data for motorcycles is very limited, and there currently isn’t a third-party data option available for motorcycles that provide symbol and industry standard vehicle groupings. Slalom applied its deep industry expertise in product management and underwriting to develop, design, and deliver a solution that can be utilized by multiple carriers across the industry.

Opportunity

Key competitors utilize a master motorcycle symbol file, creating best-in-class pricing, segmentation, and ease of use. Currently the industry doesn’t have a symbol file to map existing motorcycle symbol assignments to leading providers of motorcycle insurance, which is primarily due to limited product management resources and product office budgets. To solve the issue, Slalom created a comprehensive data set.

Slalom Motorcycle Symbol File

The data set that comprises the Slalom Motorcycle Symbol File represents the most comprehensive motorcycle vehicle data currently available for the insurance industry. The data set includes:

  • Vehicle year
  • Manufacturer
  • Model
  • Vehicle type
  • VIN
  • Type
  • Engine size (CC)
  • List price
  • Wholesale price
  • Retail price
  • Options
  • Industry grouping (Symbol)

Solution Impact

Product and Pricing

  • Creates symbol descriptions and develops grouping methodology
  • Provides competitive analysis
  • Provides understanding of market-based pricing
  • Significantly improves the quality of vehicle data
  • Seamlessly integrates into existing product and pricing structures thanks to flexible design

Underwriting

  • Reduces the number of policies needing underwriting review
  • Helps reduce the number of follow-ups on missing or incomplete vehicle information
  • Helps improve eligibility on a broad set of vehicles including motorcycle, snowmobiles, and ATVs

Claims

  • Helps adjusters identify insured vehicles
  • Reduces loss results
  • Improves the carriers ability to identify vehicle values and custom parts and equipment

Ease of Use

  • Fast and accurate quote, issue, and policy change
  • Creates VIN look-up and data pre-fill
  • Helps enable implementation of real-time quote and issue
  • Data set that helps creates industry-leading solutions

Expected Outcomes and Results

Slalom plans to partner with P&C insurance companies to help seamlessly implement the Motorcycle Symbol file into their existing product and technology platforms. We’ll offer multiple solutions—from providing just the data set to hosting the data and creating a platform for companies to utilize. Slalom will also provide annual data updates to the symbol file once new motorcycle makes and models are introduced into the market. The symbol file and annual updates will all be available on a new client portal that was designed specifically by Slalom for our clients to manage their data and accounts.

About Denis Farmer
I am a Slalom Client Service Partner who helps clients in the financial services industry win on their most strategic initiatives.

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