Insurance STP & Underwriting · Cluster ㉗ · OpenChainGraph v0.4

Insurance STP & Underwriting

For actuaries, underwriters, claims automation engineers, and insurance product compliance teams. Seven computational tools covering the end-to-end insurance STP stack: parametric trigger adjudication with neutral anchor receipts (IAIS ICP 19), catastrophe bond layer arithmetic (attachment, exhaustion, pro-rata), life insurance illustration self-support testing (NAIC Model 582 §8C yr15/yr20 and §8D lapse-support, ASOP 24), NAIC Risk-Based Capital action level computation (200/150/100/70% ACL ladder plus trend test), loss cost multiplier rate derivation using user-supplied loss costs only (never ISO/Verisk proprietary data), openIDS Homeowners record validation (AAIS/Linux Foundation open standard v1.0, November 2025 -- this is not ACORD), and claims STP return on investment modeling (NPV, IRR, payback period). All seven tools accept structural, aggregate, or policy-level inputs only. No policyholder names, Social Security numbers, health information, claims history, or individual identifiers of any kind. Zero PII by construction.

IAIS ICP 19 · Parametric Trigger IN FORCE NAIC Model 582 · §8C/§8D IN FORCE NAIC RBC · 200/150/100/70% ACL IN FORCE openIDS Homeowners v1.0 (AAIS/Linux Foundation Nov 2025) ASOP 24 · Illustration Actuarial Standard IN FORCE 4 OCG Chains · 2 Gated (§21.4) LCM: User-Supplied Loss Costs Only openIDS Only — NOT ACORD
🔒 All inputs are processed locally in your browser. No data is transmitted. Do not enter real policyholder data -- use synthetic or anonymised inputs only. No PII is collected, stored, or transmitted by any tool in this cluster.
⚠ Not legal, actuarial, or insurance advice. These tools produce tamper-evident audit artifacts for professional review. Trigger determinations, RBC action levels, and illustration certifications require review by a licensed actuary and, where required, state insurance department review. LCM rate filings require actuarial certification under state rate-filing regulations.

Computation Tools · ART-251 to ART-257

Seven OCG nodes. All gpu:false, client-side, zero PII. Proofs deferred; conformance fixtures present.

ART-251 · compliance mandate
Parametric Trigger Payout Calculator
Evaluates parametric trigger (threshold, tiered, linear index), computes payout amount and trigger fraction, and produces a tamper-evident anchor receipt routed to anchor.ainumbers.co/mcp for neutral dispute adjudication. Supports pro-rated sub-threshold amounts. IAIS ICP 19.
compute_parametric_trigger_payout
IAIS ICP 19 IN FORCE
ART-252 · compliance mandate
Cat Bond Trigger Term Validator
Validates catastrophe bond attachment point, exhaustion point, and pro-rata or binary payout arithmetic. Computes layer position (BELOW_ATTACHMENT, WITHIN_LAYER, ABOVE_EXHAUSTION) and payout amount as a percentage of principal. ISDA CAT bond protocols.
validate_cat_bond_trigger_terms
ISDA CAT Bond Protocols
ART-253 · compliance mandate
Life Illustration Self-Support Test
Runs NAIC Model 582 §8C self-support test for year-15 and year-20 benchmarks and §8D lapse-support test. Accepts user-supplied account value, premium, COI, expense, and credited interest arrays. Issues pass/fail verdict with support ratio series per ASOP 24. Non-variable and variable UL supported.
run_illustration_selfsupport_test
NAIC Model 582 · ASOP 24 IN FORCE
ART-254 · compliance mandate
NAIC RBC Action Level Calculator
Computes the NAIC Risk-Based Capital action level code from Total Adjusted Capital and Authorized Control Level inputs. Five-level ladder: NO_ACTION (200%+), COMPANY_ACTION (150-200%), REGULATORY_ACTION (100-150%), AUTHORIZED_CONTROL (70-100%), MANDATORY_CONTROL (<70%). Optional prior-year TAC trend test.
compute_rbc_action_level
NAIC RBC Framework IN FORCE
ART-255 · analytics mandate
LCM Rate Derivation
Loss cost multiplier decomposition math on user-supplied loss costs only. Accepts loss cost, LAE ratio, fixed and variable expense ratios, profit loading, and credibility weight. Computes LCM, indicated rate, rate change direction, and credibility-weighted rate. Never embeds or redistributes ISO/Verisk proprietary loss cost data.
compute_lcm_rate_derivation
⚠ User-Supplied Loss Costs Only
ART-256 · compliance mandate
openIDS Homeowners Record Validator
Validates homeowners insurance data records against the openIDS Homeowners standard v1.0 (AAIS/Linux Foundation, November 2025). Checks required sections, required fields, policy type, date logic, and coverage consistency. This tool uses the open openIDS standard only -- it is not an ACORD validator and does not reference any ACORD schema.
validate_openids_homeowners_record
openIDS v1.0 (AAIS / Linux Foundation)
ART-257 · analytics mandate
Claims STP Economics Calculator
Models claims straight-through processing return on investment: NPV, IRR (Newton-Raphson solver), and payback period over a configurable projection period. Accepts claims volume, manual and STP unit costs, current and target STP rates, implementation cost, and discount rate. Optional leakage modeling for manual vs STP error rates.
calculate_claims_stp_economics
STP ROI Framework

OpenChainGraph Workflows

Four OCG chains: two gated (§21.4 decision gate, decisions[] recorded) and two linear. All hash-anchored §4.

OCG Chain · compliance mandate · Gated
Parametric Trigger Adjudication
ART-251 evaluates the parametric trigger. §21.4 gate reads /trigger_hit: false exits (no payout); true proceeds to ART-252 for cat bond layer-level payout confirmation. Produces neutral anchor receipt for both branches.
Step 1: compute_parametric_trigger_payout → [GATE /trigger_hit] → Step 2: validate_cat_bond_trigger_terms
§21.4 GATED · decisions[] recorded
OCG Chain · compliance mandate · Gated
Insurer RBC Action Level
ART-254 computes the NAIC RBC action level. §21.4 gate reads /action_level_code: NO_ACTION exits (no remediation needed); any triggered action level proceeds to ART-257 for claims STP economic analysis under financial stress.
Step 1: compute_rbc_action_level → [GATE /action_level_code] → Step 2: calculate_claims_stp_economics
§21.4 GATED · decisions[] recorded
OCG Chain · compliance mandate · Linear
Cat Bond Trigger Validation
ART-252 validates attachment/exhaustion terms and layer position, then ART-251 computes the full parametric payout. Both steps always run to produce a complete layer-level economic proof for ISDA/IAIS adjudication review.
Step 1: validate_cat_bond_trigger_terms → Step 2: compute_parametric_trigger_payout
OCG Chain · compliance mandate · Linear
Life Illustration Self-Support Test
ART-253 runs the NAIC Model 582 illustration self-support test, then ART-254 computes the NAIC RBC action level. Both steps run unconditionally to connect product-layer illustration solvency health to entity-layer capital adequacy in one tamper-evident chain artifact.
Step 1: run_illustration_selfsupport_test → Step 2: compute_rbc_action_level

Standards & Scope Notes

Critical clarifications for professional users.

openIDS vs ACORD: ART-256 uses the openIDS Homeowners v1.0 open standard published by AAIS and the Linux Foundation in November 2025. This standard is freely available under an open license. This tool is not an ACORD validator and does not reference, embed, or implement any ACORD schema (ACORD XML/AL3 requires an ACORD membership license). If your workflow uses ACORD messages, map to openIDS fields before using this tool.
LCM Loss Costs: ART-255 performs Loss Cost Multiplier decomposition math only. It never embeds, references, or redistributes ISO/Verisk advisory loss cost data (which is proprietary and licensed per jurisdiction). You must supply your own filed or internally developed loss costs. The tool's proprietary_data_notice field in every output artifact makes this explicit for audit trail purposes.
Related clusters: For US mortgage compliance and HOEPA/HPML tools, see Mortgage Compliance (clusters ㉑–㉓). For AI-Act high-risk system compliance (relevant to automated underwriting), see AI Governance. For IFRS 17/Solvency II reconciliation, see the insurance reporting cluster in the OpenChainGraph Hub.
✓ All seven tools in this cluster operate on structural, aggregate, or policy-level data. No tool accepts, stores, or transmits individual policyholder information, health data, claims records, Social Security numbers, or any other personally identifiable information. Zero PII by construction.

Regulatory References

IAIS ICP 19 — Conduct of Business: Product Design and Pricing; parametric insurance trigger and payout standards.
NAIC Model 582 — Life Insurance Illustrations Model Regulation; §8C self-support test (yr15/yr20), §8D lapse-support test.
ASOP 24 — Actuarial Standard of Practice No. 24: Compliance with the NAIC Life Insurance Illustrations Model Regulation; actuarial certification requirements.
NAIC Risk-Based Capital Framework — Life, Health, and P&C RBC formulas; 200/150/100/70% ACL action level ladder; trend test methodology.
openIDS Homeowners v1.0 — AAIS/Linux Foundation, November 2025; open homeowners insurance data standard (HO-3, HO-5, HO-6, HO-8, HO-4, HO-2). Free open license. Not ACORD.
ISDA CAT Bond Documentation — Catastrophe bond trigger definitions, attachment/exhaustion arithmetic, and pro-rata payout protocols.
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