Compliance Governance and Risk Management in Insurance

Transform rating compliance with our State Rate Accuracy Assessment

Deloitte’s State Rate Accuracy Assessment can help you transform your rating compliance—from reactive to proactive—through compliance automation and analytics. It can also help remediate rating issues, moving beyond sampling just a few policies to a full-book review.

Managing rate accuracy

Many insurers are searching for a way to transform their approach to managing rate accuracy in their book of business. This is in response to trend in the insurance marketplace that has seen a steady increase in market conduct exams focused on rating as regulators are trying to ensure that premiums charged to consumers are in conformance with filed and approved rates.

State Rate Accuracy Assessment: Is your organization being proactive with its book of business?

An increase in examinations

The regulatory focus on non-compliance of filed rates is driving an increase in examinations. During these examinations, insurers must show fair treatment to policyholders, prompt data readiness, and effective operational processes. Insurers unable to satisfactorily meet regulatory expectations may spur further regulatory scrutiny and associated costs. The risks associated with misrated policies are:

A tool to help you transform

Deloitte’s State Rate Accuracy Assessment (SRAA) is a proactive, compliance analytics tool that can help clients find charged rates that are inconsistent with their state filed and approved rates. Deloitte helps organizations validate data governance and rating compliance to create a view that will help the organization succeed.

Deloitte can tailor its systemic and accelerated process of re-rating a book of business to the period and product(s) selected by the company. Deloitte performs a data-readiness assessment and looks for inconsistencies between the insurer’s charged rates and state-filed and approved rates. We provide observations and recommendations to correct found discrepancies and mischarges.

The State Rate Accuracy Assessment is more than an analysis of an insurer’s rating process; it is an opportunity to detect exposures to significant risks and mitigate those risks prior to regulatory scrutiny—completed under attorney-client privilege.


  • Test market conduct readiness while analyzing rating integrity
  • Capture lost premiums
  • Proactively remediate overcharges

Get started

Deloitte’s State Rate Accuracy Assessment can meet your unique needs. We can help you start small, scale fast, and then apply our analytics-driven solution across your book of business.

Start small
Pilot and test on one product for one state, before rolling out across multiple states. For those with smaller operations or those that would like to test the waters, a single state and single product is selected for assessment. The insights gleaned from this initial state assessment are used to understand which areas within your broader operations may contain more or less risk.

Scale fast
Prioritize targets using the scale of Deloitte’s resources to assess rating environment structure and target underlying operations priorities. For those compliance organizations that are larger, more mature or perhaps recently fined by a regulator, the target prioritization is recommended. Deloitte can assist in mapping your algorithm landscape to identify similarity between rate plans, and help you make a selection that allows you test key areas within your book of business.

Apply across your book of business
Begin broad monitoring, assessing multiple product lines and rate plans to maximize risk sensing. This enables ongoing monitoring and the deepest utilization of SRAA’s power. This approach brings in all states and products for assessment and provides a more comprehensive view of the risk in your organizations. Deloitte would assist you in mapping the algorithm landscape and structuring a program that periodically tests your entire book of business.

Get ahead of what’s ahead

Overcome typical rating challenges with a cloud-based and machine learning-driven solution.

Deloitte’s deep insurance industry insight and technical compliance knowledge can help you. Finding the most impactful areas for transformation, applying the right solution, and overcoming other factors that hinder effective adoption of technology are critical steps for insurers to solve their compliance challenges. With our experience across the regulatory and compliance ecosystem, Deloitte is well- positioned to help you address rating integrity and accuracy.

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