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Intes Computer > PRODUCTS > VVS > Insurance product

Insurance product

The VVS product definition subsystem is a powerful set of tools that allows an authorized user to develop new insurance products and corresponding tariff rates, with no or minimal assistance from programmers.

The product subsystem is used for definition of all types of insurance (P&C, life, health etc.). Some of the basic elements of an insurance product defined by the product subsystem are:

  • type of insurance
  • type of insurance group
  • product currency
  • default payment arrangements
  • default payment mode
  • default duration of policy
  • automatic renewal of policy
  • type of premium computation
  • types of insured object
  • types of insured risk
  • mutual relations between the risks
  • premium computations at the sub-risk level
  • premium supplements
  • discounts
  • self-retention
  • insurance terms and conditions
  • use of the bonus/malus system
  • use of the indexing system
  • linkage to the reminder subsystem
  • product - claim type relation
  • validation rules
  • additional mandatory or optional data (default values, allowed values, limits)
  • computation of reserve amounts for life insurance products
  • computation of redemption amounts for life insurance products
  • computation of annuities for pension insurance.

The product subsystem significantly simplifies and speeds up the process of development, testing and introduction of new products into the production. For simple products, it takes only a few hours to develop a product, from the idea to its use in the production[1].

New products which are similar to the already defined ones may be very easily developed by means of the copy and change functions. Additional validations, initiating policy variables, computation subroutines, etc. are installed into the product by the UEX subsystem. The VVS has its own script language that can be used for these purposes.

The most important advantages of the VVS product definition subsystem:

· autonomous creation of new products and tariff rates, following the user's ideas and requests, without any assistance from the software's author;

· free definition of product structures, object types, risks and tariff rates;

· easy addition of new variables for the description of objects, risks or policies; variable values are stored within each policy, and can be easily used for various purposes: information saving, reporting, system function parametrization, premium computation, etc.;

· by means of UEX functions, extra logic can be added to the system, such as setting policy variable values, user defined validation rules, customized rating etc.;

· easy definition of policy default values, such as insured sum, payment mode, policy duration, booking parameters etc.;

· a product defined in the VVS product definition subsystem is available in the same form for the AIS and the VVS;

· the policy import program starts the same functions (validation rules, initialization functions, etc.) as those done by manual user input;

· new products and tariff rates are created without need to change and/or compile standard VVS modules;

· the »Claim management« module uses product data - when notifying a claim, validating insured objects and insured risks;

· for life insurance products, the product definition subsystem supports the definition of reserve and redemption computation methods.

From the technical point of view, the product definition subsystem is the key module of the VVS system.