Automated Validation of Insurance Applications against Calculation Specifications

Insurance companies rely on their Legacy Insurance System (LIS) to govern day-to-day operations. These LIS operate as per the companys business rules that are formally specified in Calculation Specification (CS) sheets. To meet ever-changing business demands, insurance companies are increasingly transforming their outdated LIS to modern Policy Administration Systems (PAS). Quality Assurance (QA) of such PAS involves manual validation of calculations implementation against the corresponding CS sheets from the LIS. This manual QA approach is effort-intensive and error-prone, which may fail to detect inconsistencies in PAS implementations and ultimately result in monetary loss. To address this challenge, we propose a novel low-code no-code technique to automatically validate PAS implementation against CS sheets. Our technique has been evaluated on a digital transformation project of a large insurance company on 12 real-world calculations through 254 policies. The evaluation resulted in effort savings of approximately 92 percent against the conventional manual validation approach.