Selecting the underwriting company through segmentation

Guidewire PolicyCenter provides the ability to set the underwriting company for a policy on the Policy Info page for Issuance, Rewrite, Renewal, and Submission jobs.

  • If the user has the requisite underwriting permission (Multiple company quote), then PolicyCenter displays a list of valid underwriting companies. The user can then select from the list and set the underwriting company.
  • If the user does not have the necessary underwriting permission, then PolicyCenter displays an Autoselect button instead.

Segmentation Example

Segmentation classes determine the segmentation, and, therefore, the available underwriting companies for a policy. Large insurers typically license more than one subsidiary to underwrite policies on behalf of the insurer. The primary reason for having multiple subsidiaries is to accommodate state regulatory requirements. (Many states do not allow insurers to have more than one set of rates per underwriting company.) Therefore, if an insurer desires to offer multiple sets of rates in that state, the insurer must file each set of rates under a separate underwriting company for that state.

Underwriters typically profile an account to determine the segment (category) into which an account falls. The segment determines which underwriting company actually underwrites the policy. By extension, segmentation sets the rates for which an account is eligible. The underwriter then uses appropriate set of rates to quote the policy.

For example, a workers’ compensation insurer can segment accounts into three different segments:

  • High hazard
  • Medium hazard
  • Low hazard

The insurer has three underwriting companies corresponding to each of the segments. To generate a quote for the policy, an underwriter indicates the underwriting company with which to place the policy. The rating engine takes this information and uses it to calculate a quote for the policy with the appropriate set of rates.

In the following example from WC_SegmentEvaluator, segmentation sets the segmentation level for any policy written for the state of Hawaii to high risk. 

override property get IsHighRisk() : boolean {
  return _policyPeriod.PrimaryLocation.State == TC_HI
}