Verisk Insurance Solutions - Underwriting Announces New Point-of-Sale Automobile Underwriting Fraud and Premium Integrity Solution
JERSEY CITY, N.J., December 5, 2012 - Verisk Insurance Solutions - Underwriting, a unit of Verisk Analytics (Nasdaq: VRSK), today announced the launch of RISK:check® POS (Point of Sale), a new underwriting model for personal lines automobile insurers. RISK:check POS simultaneously identifies applications with a high likelihood of future claims fraud and finds rating errors that result in premium leakage.
Personal auto insurance carriers are competing for business as never before, with record levels of advertising. And consumers are demanding more options, including the ability to quote, buy, and manage policies directly and via mobile devices. Perpetrators of fraud are becoming more sophisticated, and the challenge to control fraud and rating error has never been more complicated. Identifying fraud before the policy is issued as part of the underwriting process has never been more critical. The National Insurance Crime Bureau (NICB) has cited industry statistics that estimate up to 10 percent or more of insurance claims involve fraud. Furthermore, Verisk Underwriting has estimated that due to incorrect addresses, drivers not listed on policies, and other factors, premium leakage can represent 10 percent of unrealized premium.
"Despite these underwriting challenges, carriers want to make it easy for customers to get a quote and buy a policy," said Neil Spector, president of Verisk Underwriting. "Carriers that offer a superior customer experience, control expenses, and use technology at the point of sale to manage the small percentage of risks related to fraud and premium errors will enjoy a sustainable competitive advantage in the market."
"The RISK:check POS model was developed through millions of carrier-provided policy and claims records," said Spector. "It has been further vetted and validated with more than 10 million new business policies in dozens of retrospective actuarial studies on behalf of regional and national writers. The model has been demonstrated to improve first year loss ratios between 3 and 6 points."
RISK:check POS can be incorporated into a fully automated underwriting process and is compatible with all personal auto distribution channels, including agency, call center, and Internet. It is available as a standalone solution or can be integrated into QuickFill®, Verisk's data prefill solution. RISK:check POS is part of the broader Verisk Underwriting RISK:check solution that identifies premium leakage and potential fraud for policies currently in a portfolio.
The technology underlying and powering RISK:check POS is provided via a strategic alliance between Verisk Underwriting and Inovatus, LLC, of Alpharetta, Georgia. (www.inovatusllc.com). "The Inovatus point-of-sale model is the most advanced and predictive non-FCRA fraud risk model available to the personal auto market today. It's a powerful new addition to the Verisk Underwriting data assets and underwriting solution suites serving the auto insurance market," added Spector.
About Verisk Insurance Solutions - Underwriting
A unit of Verisk Analytics (Nasdaq: VRSK), Verisk Insurance Solutions - Underwriting is a leading source of underwriting information about property/casualty insurance risk. Drawing upon vast experience in data management, predictive modeling, and risk-assessment solutions, Verisk Insurance Solutions includes the industry-leading brands of ISO, AIR Worldwide, and Xactware. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com/insurance.
|Jessica Riccardi/Giuseppe Barone|
|MWW Group (for Verisk)|
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Source: Verisk Analytics Inc. via Thomson Reuters ONE