A Case Study on a Scalable Platform for a Specialty Insurance Firm

This case study explores how Auxo Solutions, in collaboration with partners, helped a specialty insurance firm streamline the software systems integration of 45+ MGUs by developing a modular, scalable platform. The solution addresses inefficiencies in the firm’s disparate systems while supporting diverse underwriting needs.

A modular platform was created to address inefficiencies in the software systems used by a specialty insurance firm’s 45+ MGUs, with the potential to improve scalability and reduce operational costs as the rollout continues.

Auxo Solutions, working as part of a development partnership, began addressing the software inefficiencies faced by a large specialty insurance firm managing 45+ managing general underwriters (MGUs), each using disparate systems for underwriting and operations. The firm also relied on a centralized legacy platform for administrative tasks, but this system could not support the diverse and specialized underwriting needs of the MGUs. This combination of disparate systems and a limited legacy platform created inefficiencies and operational bottlenecks. Previous attempts to unify these systems, including custom-built solutions, were costly and slow due to scalability challenges.

To resolve these issues, Auxo and its partners developed a modular software platform designed to integrate MGUs across multiple lines of business (LOBs). By reusing 80% of pre-built components, the platform reduces development time and operational expenses, streamlining the integration process. Early-stage innovations include a customizable underwriting workbench built on the Unqork platform, which is streamlining complex workflows and improving user experience. Additionally, the platform integrates a data-driven rating system, allowing real-time updates to pricing models and enabling the firm to respond more quickly to changing risk profiles across its insurance products.

A middle-tier architecture was also implemented to manage complex data transformations between the new platform and the legacy systems, ensuring smooth performance and scalability throughout the ongoing rollout. While early results show improvements in underwriting efficiency and potential for reduced costs, the full benefits of the platform will be realized as more MGUs are integrated and the system’s capabilities expand.

A specialty insurance firm grew rapidly by acquiring 45+ managing general underwriters (MGUs), each operating across diverse lines of business, offering specialized insurance products. While this acquisition strategy enabled significant growth, it introduced major operational challenges due to fragmentation across the firm’s systems.

In the insurance industry, MGUs manage underwriting and policy issuance on behalf of carriers, enabling insurers to offer a wide range of niche products without directly overseeing them. However, each MGU often operates independently with its own software systems, leading to inefficiencies when integrated into a larger organization. This system fragmentation results in data silos, inconsistent workflows, and high maintenance costs. Addressing these issues requires robust, scalable software platforms capable of unifying operations while allowing for the customization necessary to support the varied products and workflows across the MGUs.

Disparate systems and a limited legacy platform created inefficiencies, with costly custom solutions underscoring the need for a scalable, unified platform.

The firm’s 45+ MGUs each operated with their own disparate systems for underwriting and operations. Additionally, the firm relied on a centralized legacy platform for administrative tasks like policy management. However, this legacy system could not handle the specialized and diverse underwriting needs of the MGUs, resulting in inefficiencies and operational bottlenecks. Custom solutions were developed to address these issues, but they led to high costs and slow rollouts due to scalability challenges. The limitations of both the legacy system and the custom-built solutions underscored the need for a more scalable and adaptable platform to support the firm’s growing portfolio and diverse underwriting requirements.

Key Statistic:

Fragmented IT systems in the insurance industry can lead to a 20-40% increase in operational costs, according to a report by McKinsey

A modular platform was developed to streamline the software integration of MGUs, reduce costs, and improve performance, with full benefits expected as the rollout progresses.

Auxo Solutions, working collaboratively, developed a modular, scalable platform tailored to support the firm’s 45+ MGUs. The modular approach, innovated by Auxo, enables efficient integration of MGU software systems by reusing approximately 80% of pre-built components across multiple LOBs. This modularity provides flexibility for customization while significantly reducing the time and costs involved in integrating MGUs into the software platform.

Early-stage innovations include a data-driven rating platform that enables actuaries to update risk models in real-time without requiring code changes. This allows the firm to quickly respond to market conditions, such as fluctuating risk profiles in P&C lines, ensuring more accurate and timely adjustments.

The Unqork platform was leveraged to provide a no-code, flexible front-end interface that integrated seamlessly with the firm’s legacy back-end system. The Unqork platform enabled rapid customization of the underwriting workbench.

Additionally, a middle-tier architecture was implemented as part of the collaborative project to manage complex data transformations between the new platform and the legacy systems. This architecture improves system performance while ensuring that the legacy system continues handling policy administration tasks smoothly.

Though the project is still in its early rollout phase, initial improvements in underwriting efficiency and potential cost reductions are already becoming evident. As the rollout continues and more MGUs are integrated into the software platform, the firm is poised to fully realize the system's long-term benefits.

Auxo Solutions followed a phased approach, starting with a detailed assessment and pilot, and progressively scaling the system by introducing reusable components and optimizing data handling, ensuring the platform's readiness for broader deployment.

Key Performance Indicators (KPIs)

The success of the project will be measured by the efficiency, scalability, and cost reduction achieved through the software systems integration.

Digital streamlining and automation can save up to 80% in certain insurance processes, per McKinsey.

By leveraging a modular platform, the insurance firm is already seeing improvements in software integration and scalability for its MGUs, with full benefits expected as the rollout progresses.

Though still in the early stages of rollout, the modular platform has already begun to improve the firm’s software integration processes and scalability across its MGUs. The platform has increased the integration rate of MGU systems and laid a strong foundation for reducing operational inefficiencies. As more MGUs are integrated, the full impact—particularly in terms of cost savings and enhanced flexibility—will be realized. This approach offers a scalable model for other insurance firms facing similar integration challenges.