|
|
If you’re not already in the race, you’re losing.
|
|
"In the rapidly changing and highly competitive soft market most insurance companies find themselves, it no longer is a question of 'if' they will adopt Business Analytics or even 'when.' It's now a question of how fully they can commit to leveraging the data they touch every day to gain market insight and improve market positioning," Mark Gorman, Principal of Mark B. Gorman & Associates LLC.
|
|
Why Millbrook Predictive Analytics powered by Valen
|
In the last hard market, auto carriers that used predictive analytics lowered their combined ratio to the mid-80’s. Now, in a soft market, they can afford a significant increase in their combined ratio and still make money. Those without predictive analytics continue to price inappropriately. They’re losing, BIG. Add to that a sluggish economy and even the investment income may not save you. Having seen the advantages in personal lines, companies are now using predictive analytics for commercial lines too. If you’re not already in the race, you’re losing.
|
|
How we can help
|
| Underwriting |
|
The use of predictive analytics for risk scoring and pricing has proven itself in personal lines. Companies without predictive analytics are being adversely selected against. Companies are now deploying predictive analytics for commercial lines too. Not only for pricing, but risk scoring as well to determine tier placement, and accept/reject/referral of risks.
|
| Claims |
|
Predictive analytics can be used to triage claims and detect fraud. Pinpoint claims that have escalation and or fraud potential early in the process for proper handling.
|
| Audit |
|
Increase net additional premium by using predictive analytics in the premium audit function. Rather than using premium bands and/or class codes only to determine which accounts to field audit, our analytics uses sophisticated pattern recognition technology to identify those policies with an exposure and premium mismatch and then recommends the type of audit to perform - mail, phone or physical.
|
|
 |
For more information, visit the Valen website.
|
|
|
