7/12/2006
Insurance News
Net
SAN FRANCISCO, July 10, 2006 -- Quality Planning Corporation
(QPC), the Rating Integrity Solutions company, has introduced a new
data analytics product that uncovers costly insurance premium
rating anomalies by comparing an insurer's rating information with
thousands of independent data sources.
The new RISK:select product is designed specifically for states
where mileage is not an important rating factor and complements
QPC's existing RISK:check(R) data analytics solutions that insurers
use to identify and recover lost auto-insurance premium
revenue.
Unlike RISK:check, RISK:select does not include sophisticated
mileage calculations as part of its bank of analyses. As a result,
a RISK:select analysis typically costs less than a RISK:check
analysis, yet delivers exceptional results to insurers not using
mileage to calculate auto insurance premiums. RISK:select
accurately identifies key causes of premium "leakage" such as
missing operators, garaging location, and business usage.
"Our RISK:check product consistently provides QPC clients with a
high return on their investment, especially in states such as
California where accurate vehicle mileage is essential for optimal
premium pricing," said Daniel Finnegan, president of QPC. "With our
new RISK:select product, QPC's Rating Integrity Solution can be
deployed cost-effectively on behalf of most major private passenger
auto insurers in all 50 states and the District of Columbia."
Rating error is a major source of premium loss -- or leakage --
costing private passenger auto insurers more than $16 billion
annually. Auto premium leakage reduces premium and bottom-line
profitability from every auto writer. It runs from 4% to 15% of
premium revenues, depending on a number of different factors. These
include: the company's rating plan, the states in which it
operates, the degree of effort expended to ensure that underlying
policyholder data is up-to-date, and even the insurer's corporate
attitude to the problem.
Separately, for ongoing rating integrity, QPC also announced the
national availability of RISK:guard, which maintains rating
integrity once a book of business has been scrubbed by RISK:select
or RISK:check. Intended for use in the second and subsequent years
of the program, RISK:guard lowers future costs by up to 60% because
it acts as a filter and reduces the number of policies that require
further investigation. For just pennies per policy, auto insurers
can regularly monitor their books of business and keep premium
leakage to an absolute minimum.
"It's surprising how many auto insurers appear to be unaware or
unconcerned about the flawed information on which they base their
business," said Bob U'Ren, vice president of underwriting and
business development at QPC. "Rating integrity is all about the use
of accurate, validated policy-holder data. QPC's clients experience
impressive results and substantial ROI because they have better
underwriting information."
On average, 82% of QPC audits uncover policies lacking sufficient
premium to cover the intended risk. QPC's clients experience
average premium growth of 4% to 8% as a result of improved rating
integrity.
Rating integrity and competitive advantage QPC assists auto
insurers in their efforts to minimize rating error. QPC takes an
auto insurance company's book of policyholders and processes it
through a battery of more than 150 proprietary tests,
cross-reference checking and pattern-matching algorithms to
identify errors and discrepancies that might suggest fraud and
misrepresentation on the part of consumers. QPC also provides
insurers with additional services, such as policyholder phone
interviews to discover missing drivers, verify garaging addresses,
determine annual mileage, and other key rating information. Over
time, insurance companies with accurate rating information are
better able to compete and are more financially stable.
About
ISO
ISO is a leading provider of
products and services that help measure, manage and reduce risk.
ISO provides data, analytics and
decision-support solutions to professionals in many fields,
including insurance, finance, real estate, health services,
government and human resources. Clients use
ISO's databases and services to
classify and evaluate a variety of risks and detect potential
fraud. In the U.S. and around the world,
ISO's services help customers
protect people, property and financial assets.
For more information, visit
http://www.iso.com.
About Quality Planning Corporation
An
ISO business, QPC is focused
exclusively on providing decision integrity solutions to the
insurance industry. QPC works with insurance companies to identify
areas of significant premium leakage using sophisticated database
management, statistical analysis and modeling, customized survey
design, and highly targeted customer interaction. Quality Planning
Corporation (QPC), the rating integrity solutions company, was
founded in 1985 and is headquartered in San Francisco.
For more information, visit
http://www.qualityplanning.com.
Tim Cox Zing Public Relations 650-369-7784
tim@zingpr.com
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