Verisk Insurance Solutions – Underwriting, a unit of VeriskAnalytics, announces the launch of RISK:check POS (Point of Sale),a new underwriting model for personal lines automobile insurersthat identifies applications with a high likelihood of futureclaims fraud and finds rating errors that result in premiumleakage.

Perpetrators of fraud are becoming more sophisticated, and thechallenge to control fraud and rating error has never been morecomplicated. Identifying fraud before the policy is issued as partof the underwriting process has never been more critical.

The National Insurance Crime Bureau (NICB) has cited industrystatistics that estimate up to 10 percent or more of insuranceclaims involve fraud. Furthermore, Verisk Underwriting hasestimated that due to incorrect addresses, drivers not listed onpolicies, and other factors, premium leakage can represent 10percent of unrealized premium.

“Despite these underwriting challenges, carriers want to make iteasy for customers to get a quote and buy a policy,” says NeilSpector, president of Verisk Underwriting. “Carriers that offer asuperior customer experience, control expenses, and use technologyat the point of sale to manage the small percentage of risksrelated to fraud and premium errors will enjoy a sustainablecompetitive advantage in the market.”

“The RISK:check POS model was developed through millions ofcarrier-provided policy and claims records,” said Spector. ”Ithas been further vetted and validated with more than 10 million newbusiness policies in dozens of retrospective actuarial studies onbehalf of regional and national writers. The model has beendemonstrated to improve first year loss ratios between three andsix points.”

RISK:check POS can be incorporated into a fully automatedunderwriting process and is compatible with all personal autodistribution channels, including agency, call center, and Internet.It is available as a standalone solution or can be integrated intoQuickFill, Verisk's data prefill solution. RISK:check POS is partof the broader Verisk Underwriting RISK:check solution thatidentifies premium leakage and potential fraud for policiescurrently in a portfolio.

The technology underlying and powering RISK:check POS isprovided via a strategic alliance between Verisk Underwriting andInovatus, LLC.

“The Inovatus point-of-sale model is the most advanced andpredictive non-FCRA fraud risk model available to the personal automarket today. It's a powerful new addition to the VeriskUnderwriting data assets and underwriting solution suites servingthe auto insurance market,” says Spector.