The challenge: Delays with a California insurance rate filing were costing an MGA

A managing general agency (MGA) offering pet insurance through a fronting insurance company faced significant profitability challenges. In California, the MGA had previously employed another firm to complete a rate filing to address these issues. That rate filing was subsequently withdrawn more than six months after the filing submission date as the firm overseeing the filing was not able to complete the required California filing materials in a compliant and efficient manner. This created significant delays in the MGA’s ability to address its profitability challenges.

Approach: Milliman’s Insurance Product Development Accelerator speeds up the rate-filing process

Milliman’s Insurance Product Development Accelerator (IPDA) developed a strategic approach to first assess the profitability and rate inadequacy of the MGA’s pet insurance product across several of its states. Milliman then completed the rate indication methodology required by California, the results of which allowed the client to file for a rate increase that was close to the increase it had measured internally. Milliman also oversaw all interactions with the California Department of Insurance, which helped ensure the filing moved through the filing review process in an efficient manner.

Impact: Milliman’s actuarial and regulatory expertise cut the rate filing time in half

Milliman’s IPDA techniques, as well as its actuarial and regulatory expertise, enabled the MGA to receive approval for its California rate filing at the amount that was originally submitted with the filing. Despite many California rate filings taking more than six months to receive approval, Milliman was able to guide the process to completion in just over three months. By cutting the process in half, this accelerated decision enabled the MGA to take more immediate steps to improve its profitability in California.