TransUnion has launched Rating Verification Platform (RVP), aservice that helps automobile insurance carriers verify theidentity and accuracy of an applicant's information before a policyis bound. Insurers subsequently retain premium revenues that oftenare lost through policyholder misrepresentation and fraud.

According to a recent report from Quality Planning Corp.,insurers could have collected approximately $16.2 billion inadditional premium revenues in 2005 if they had used accuraterating information to calculate premiums. In addition, vehiclerating errors or misrepresentation of factors such as rated commutedistance, annual mileage, vehicle usage, and rated territory weremajor contributors to the nearly $1 billion increase over 2004figures.

By verifying an applicant or policyholder's identity andinformation upfront, insurance providers can enhance profitabilityand reduce the company's exposure to fraudulent claims, rather thanafter a claim investigation when an organization is most likelyunable to collect lost premiums. It also can increase premiumpursuit opportunities, helping to ensure policyholders pay theproper premiums and support compliance efforts.

"Until recently, automobile insurers have found it difficult toidentify fraud until it was too late. However, as operations becomeleaner and underwriting strategies more sophisticated, the epidemicis becoming both quantifiable and manageable," says MichaelGaughan, vice president, product development and marketing forTransUnion. "Rating Verification Platform allows savvy insurers toimplement new strategies to address fraud at the point of quote andsubsequently improve revenues."