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Insurance Operations Glossary

The Selectsys ecosystem connects AI, automation, and insurance operations through one Value Flywheel. This glossary defines the terms, metrics, and systems that appear across all platform and blog pages. Each definition links to its detailed explanation or live example inside the platform.

AI Assist (Underwriting Assistant)

AI-powered guidance system inside RQB and EI that reads underwriting rules, flags missing data, and suggests risk fit.

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AI BPO

A hybrid model combining automation and trained BPO teams. AI tools extract, route, and validate data, while human teams finalize tasks with SLA and QA control.

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AI OCR (Optical Character Recognition)

Automation that converts PDFs and document images into structured data for RQB and EI. It reduces manual entry and speeds up intake.

Explore

Analytics and PQI

Analytics measure cycle time, hit ratio, and SLA performance. PQI (Policy Quality Index) combines accuracy, speed, and audit to score overall quality.

See how PQI works

Agency Management System (AMS)

Software for MGAs, carriers, and wholesalers to manage accounts, policies, documents, tasks, and reporting across the insurance lifecycle.

For MGAs, carriers, and wholesalers:
Should support multi-carrier data, bordereaux, delegated-authority controls, audit trails, and integration with quoting, underwriting, and policy systems.

In Selectsys:
Expert Insured is our AMS for MGAs, carriers, and wholesalers, integrated with RQB (Rate • Quote • Bind), AI Assist, and Policy Administration BPO.

Features:
Accounts/contacts, tasks, documents, endorsements, renewals, bordereaux, analytics; role-based permissions, audit logs, SLA + PQI tracking; carrier API integrations; reporting.

Appetite Rules

Logic that screens submissions by class, state, limits, or exclusions to determine fit before rating.

Admitted vs. Non-Admitted

Admitted carriers are state-licensed and follow rate/form filing; non-admitted (E&S) do not but offer flexible terms.

Related:RQB

AAIS Commercial Lines

Commercial insurance programs built using rating guidance, forms, and manuals provided by the American Association of Insurance Services (AAIS), commonly used by MGAs, wholesalers, and carriers.

Accounting Visibility

The ability to view premium activity, policy-level transactions, and reporting status directly from the operating platform.

BPO (Business Process Outsourcing)

Insurance-focused outsourcing model where trained operations teams execute core insurance workflows such as submission intake, underwriting support, policy processing, endorsements, renewals, accounting, compliance, audits, and claims support inside client systems under defined SLAs and quality controls.

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BPO Pod

A dedicated, trained mini-team mapped to a specific workflow. Each Pod works under a defined SLA, QA process, and escalation path.

See example

Bordereaux

Periodic data reports (e.g., premium, claims, risk) sent from MGA/coverholder to carrier for delegated programs.

Bind Pack / Policy Pack

The assembled set of bind documents (forms, schedules, invoices, notices) generated at bind/issue.

Control Tower

Central dashboard providing real-time visibility, SLA tracking, and workload monitoring across RQB, EI, AI, and BPO Pods. It identifies bottlenecks, exceptions, and SLA breaches.

Explore

Cycle Time

Average time it takes to complete a workflow step (such as from submission to quote, or quote to bind). Measured in hours or business days and tracked in Analytics dashboards.

Certificates of Insurance (COI)

Proof of coverage documents issued for third parties, often with holder-specific wording.

Commercial Lines Platform

An end-to-end insurance platform that supports rating, quoting, binding, policy issuance, endorsements, and accounting for commercial insurance programs.

Data Fabric

The data layer that connects all Selectsys tools (AI OCR, RQB, EI, BPO, Analytics). It normalizes fields, enforces templates, and provides a single data source across systems.

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Document Accuracy

Percentage of documents created or processed without errors or rework.

Delegated Authority

Contracted authority allowing MGAs/coverholders to underwrite, bind, and issue on behalf of a carrier under specific terms and audits.

Delegated Authority Platform

A system designed to support MGAs and program administrators operating under carrier-granted authority to underwrite, bind, issue, and service policies.

Expert Insured (EI)

Selectsys Policy Administration and Forms System that manages accounts, documents, and audit logs across the insurance lifecycle.

Explore

E&S (Excess & Surplus Lines)

Market segment for risks not written in the admitted market, using non-filed rates/forms and surplus lines rules.

Endorsements

Mid-term policy changes that modify coverage, limits, deductibles, or terms after a policy has been issued.

Endorsement Processing Outsourcing

Outsourcing of mid-term policy changes that modify coverage, limits, or terms, executed with validation, QA, and audit-ready controls inside insurance systems.

Forms Engine

Module inside EI that automatically generates and manages policy and endorsement forms based on templates and RQB data.

FNOL (First Notice of Loss)

The initial claim report that starts the claims workflow and downstream servicing.

Hit Ratio

The percentage of quotes that convert into bound policies.

Formula: Bound / Quoted × 100

Integrated Accounting

Accounting functionality that is directly aligned with issued policies, endorsements, and premium transactions, providing real-time visibility without separate reconciliation systems.

Issuance and Servicing

Post-bind workflows that handle policy document creation, endorsements, certificates, and service tasks.

Read more

Insurance BPO

A specialized insurance operating model where execution work is handled by insurance-trained teams rather than generic outsourcing staff. Insurance BPO focuses on execution, not decision-making, and supports carriers, MGAs, and wholesalers at scale.

Related: Insurance BPO

Insurance BPO for MGAs

Insurance BPO tailored for managing general agents that supports delegated authority programs by handling submission intake, underwriting support, policy issuance, endorsements, renewals, bordereaux, trust accounting, and compliance while preserving underwriting authority.

Insurance BPO for Wholesalers

Insurance BPO designed for wholesalers that manages high-volume, multi-carrier execution including submissions, policy processing, renewals, accounting coordination, and carrier portal management across complex placements.

Insurance BPO for Carriers

Insurance BPO that provides carriers with scalable operational support across underwriting preparation, policy servicing, accounting, compliance, audits, and claims intake without transferring underwriting or claims authority.

ICS (Incomplete Submissions)

Definition:
ICS stands for Incomplete Submissions, referring to policy or submission files received without all required data or documents during intake.

Purpose:
ICS measures the percentage or count of incoming submissions missing key fields or attachments. Reducing ICS improves quoting speed, accuracy, and underwriting efficiency across the operating model.

Example Usage:

  • “Cycle time ↓ 20–35% • ICS ↓ 30–50%”
  • “Automation and triage reduced ICS by 40% within the first quarter.”

Loss Runs

Carrier-issued claims history used for underwriting and renewal pricing.

PQI (Policy Quality Index)

A composite score measuring policy accuracy, SLA compliance, and audit pass rate. Higher PQI = cleaner, faster, more compliant workflows.

Read full definition

Playbook

A standardized SOP that defines the exact steps, inputs, QA checks, and SLAs for each workflow handled by BPO Pods.

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Policy Issuance

The process of generating and delivering official policy documents after a risk is bound, including declarations, forms, endorsements, and policy packets.

Policy Management System

Subsystem focused on post-bind workflows, issuance, endorsements, renewals, cancellations, document assembly, and audit/compliance.

For MGAs, carriers, and wholesalers:
Must connect to underwriting, quoting, and forms libraries with auditability for delegated authority programs.

In Selectsys:
Delivered inside Expert Insured with a Forms Engine that generates policy/endorsement packets using RQB data and templates.

Features:
Issuance and endorsements with templates/approvals; COIs and document packages; renewal and remarketing cadence (120/90/60/30).

Policy Processing Outsourcing

Outsourcing of policy issuance, mid-term changes, documentation updates, and system validation to insurance-trained operations teams operating under defined workflows and SLAs.

QA (Quality Assurance) Score

Percentage of tasks or documents that pass quality review on the first attempt.

Quote Sheet

Summary document generated in RQB showing premium, limits, and terms offered to a client.

Quote Proposal

Client-ready summary comparing options (premium, limits, terms) with actions to request bind.

Related:RQB, Hit Ratio

RQB (Rate • Quote • Bind)

Selectsys rating and quoting engine that automates rate application, quote generation, and bind-pack assembly.

Learn more

Renewal and Remarketing

Process that handles policy renewals with 120/90/60/30-day cadence and offers alternate quotes or save options.

Explore

Rate Quote Bind Issue

The core insurance workflow covering rating a risk, generating a quote, binding coverage, and issuing policy documents.

Renewal Processing Outsourcing

Outsourcing of renewal preparation, documentation cleanup, remarketing support, and system updates to ensure timely and accurate policy renewals at scale.

SLA (Service Level Agreement)

A defined turnaround time or accuracy target for each workflow, tracked in Control Tower and PQI metrics.

Submission Triage

AI workflow that scores completeness, applies appetite rules, and routes submissions to the right team or carrier.

Read more

Straight-Through Processing (STP)

End-to-end automated flow from intake to quote/bind/issue without manual rekeying.

Submission Intake Outsourcing

Outsourcing of submission receipt, completeness checks, document organization, data normalization, and routing to prepare clean files for underwriting review.

Task Queue

The prioritized list of actionable work items inside EI, RQB, or BPO dashboards, visible in the Control Tower.

Turnaround Time (TAT)

The elapsed time to complete a workflow step (e.g., submission → quote); tracked in SLAs.

Underwriting Support Outsourcing

Outsourcing of pre-underwriting operational work such as clearance, file preparation, data validation, and documentation while underwriting authority remains with licensed underwriters.

Value Flywheel

Selectsys’s connected operating model that unites AI, automation, and BPO Pods across the full insurance lifecycle.

See the Flywheel