ISO Acquires QPC Analalytic Provider
NU Online News Service, Jan. 28, 3:41 p.m. EST?Insurance Services Office Inc. announced it has acquired Quality Planning Corporation, a San Francisco-based provider of analytic methods that help auto insurance companies improve underwriting evaluation of customers.[@@]
Terms of the deal were not disclosed.
According to Jersey City, N.J.-based ISO, QPC's proprietary analytic methods significantly reduce premium "leakage" in personal auto insurance by identifying likely rating errors and correcting those errors.
Incomplete or incorrect information about auto insurance rating?such as driver identity, garage address and distance driven?leads to billions of dollars a year in uncollected premium, according to QPC.
QPC maintains more than 200 different policy-validation databases. The company's pattern analysis software flags questionable rating patterns, estimates the probability an actual error will be found, and calculates the likely associated premium recovery, said ISO.
The technology produces an automated re-underwriting plan tailored to each policy containing potential errors, ISO noted. The process includes uniquely scripted and dynamic interview guides for customer contact to correct the errors.
Frank J. Coyne, ISO's chairman, president and chief executive officer, said the acquisition is "an ideal match for ISO." Mr. Coyne said QPC's models will be enhanced through access to ISO's repository of insurance data and records.
"The ability to identify and greatly reduce premium leakage?and recover appropriate premium through a statistically sound, validated rating-integrity tool?is a valuable way insurers can boost revenue and create sustainable advantage," ISO's CEO added.
QPC will remain in San Francisco, operating as a wholly-owned ISO subsidiary.
ISO provides data, analytical and decision-support products; consulting; data processing; and technical, statistical and actuarial services.
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