Considerations for evaluating a provider

Fortunately, some data providers can help insurers address the challenges of non-rate actions. Here are some qualities that insurers may want to consider when selecting a technology partner:

Ease: A high-quality, non-rate action solutions provider can analyze an insurer's entire renewal book with minimal IT resources and recommend which risks to audit, plus provide turnkey execution.
Precision: It isn't always practical to audit 100% of a renewal book. A solutions provider can work with insurers to select the top policies most likely to result in premium leakage recovery. Using analytics and estimates of recaptured dollars enables insurers to prioritize pursuit and fine-tune renewal underwriting programs based on budget and return-on-investment goals, while also balancing retention considerations.
Flexibility: Insurers should be able to select from a variety of premium leakage analytics to use for non-rate actions, even customizing specific solutions in select states. Once insurance leaders experience the value first-hand, they may decide to expand the program to include additional sources of premium leakage, as well as into other less profitable states.
Compliance: A specialized vendor can help ensure compliance with various state regulations, rather than relying on an ad-hoc, in-house approach.
Professionalism: High-quality outreach should include options for U.S. mail, customized websites, and inbound and outbound contact centers. The channels should be managed to match an insurer's branding and tone with thorough processes to sign off on all consumer-facing assets. A specialized provider can often yield better outcomes than repurposing the work of an in-house customer service team.

Brad Magick, CPCU, (brad.magick@verisk.com) leads the management of Verisk products for auto underwriting fraud, application and rate integrity, and book health. He oversees point-of-sale and renewal solutions, as well as advanced analytics that enable prioritized pursuit of premium recovery and policyholder outreach programs.

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