New Predictive Analytics Product Improves Underwriting Practices with 4 Key Advancements
DENVER – September 10, 2012 – Valen Technologies, an advanced data and analytics provider for property and casualty insurance leaders, announced today the latest in its suite of predictive analytics solutions with InsureRight 2.0. Building on InsureRight 1.0, a unique product that made predictive analytics accessible for small and mid-size carriers, InsureRight 2.0 introduces first-to-market advanced capabilities including a premium impact model, portfolio management and production monitoring reporting. Also included are improved class fit analysis and multi-state scoring capabilities. With InsureRight, Valen’s market-leading predictive analytics product, workers’ compensation underwriters can make dramatic loss ratio improvements and more accurately set risk-based pricing with a quick turnaround time.
“Workers’ compensation is one of the most difficult lines of business to predict accurately, and Valen provides a scientific way for underwriters to predict future policy risk correctly,” said Dax Craig, President and CEO of Valen Technologies. “With InsureRight 2.0, we took our industry leading product and made critical advancements to continue assisting our customers’ ability to improve underwriting performance. With workers’ compensation in a current state of peril, it is important for work comp carriers to base underwriting decisions on objective evidence rather than underwriter judgment alone.”
With the average combined ratio of 115 percent in the workers’ compensation market, Valen’s InsureRight solution addresses carriers’ need for proven tools to improve their bottom line. InsureRight makes predictive data easily accessible to underwriters so that they can better assess and price risk on each policy in their book of business. Valen provides the only proof of concept benchmark that demonstrates to carriers how predictive analytics will perform on their book of business, in advance of making a purchasing decision. InsureRight delivers on average a 5.4 loss point reduction for Valen customers.
New InsureRight 2.0 Features
Premium Impact Model
Powered by two Valen predictive models, InsureRight 1.0 provided a Risk Score and a Misclassification Score. Now with InsureRight 2.0, an additional new score has emerged with the Premium Impact Model, a first-to-market model built from ValenNetworks® contributory database, comprised of more than 4 million recent policies. Valen’s proprietary Premium Impact Model allows underwriters to identify policies with a high likelihood of exposure misclassification, that leads directly to additional premium or return premium associated with exposure shifts across classes from pre- to post- audit. This new model can also help to increase the accuracy and actionable rate of insurers’ decisions to perform physical audits during a policy term or at policy expiration.
Portfolio Management Reporting
Valen’s portfolio management and production monitoring reporting functionality, delivers a first-to-market suite of reports designed to give underwriters, managers, and executives deeper insights into their overall portfolio risk. With this insight, they are armed to make more proactive, actionable decisions to defend against adverse selection, capitalize on market position strengths and opportunities, and allocate resources more effectively and efficiently.
Portfolio Management Reporting uses Valen’s InsureRight predictions to identify trends, opportunities, and threats in the marketplace in as close to real-time as possible. It also allows carriers to spot deviations from the historic norm, and assess the impact of these deviations on overarching business needs and strategic goals. Portfolio Management Reports provide InsureRight customers with advanced intelligence, including trend analysis, governing class insights, distribution analysis and monitoring, and market analysis.
Class Fit Analysis
With InsureRight 2.0, Valen is enhancing its class fit reporting by providing underwriters with greater insight into the impact of various misclassification challenges. With an increased focus on the most relevant questions and potential risks associated with misclassification, this upgrade enforces consistency in underwriting questions related to class fit and establishes a consistent baseline for underwriting to class fit.
Carriers can now use Valen’s InsureRight solution to more efficiently score multi-state policies. With the option of scoring a policy with a single multi-state score or scoring single state versions of multi-state policies, carriers’ preferences can now more effectively fit their needs.
Existing InsureRight customers include CompWest Insurance Company, BrickStreet Mutual Insurance Company, and the Donegal® Insurance Group. InsureRight 2.0 is currently available and more information can be found online at www.valen.com.
About Valen Technologies, Inc.
Valen Technologies, Inc. provides turnkey predictive analytics to the property and casualty insurance industry. Valen’s proprietary contributory database, called ValenNetworks®, is used to deliver predictive modeling products that improve risk selection, pricing, underwriting, audit, and inspection processes. ValenNetworks® is comprised of nationwide data that includes policy-level information for Workers Compensation, Homeowners, Premium Audits, Commercial Auto and BOP, combined with disparate, non-industry data sources carefully mined to maximize usefulness. Our suite of products that includes PropertyRightTM, InsureRight®, UnderRight®, RateRight®, and AuditRight® are delivered in a fully hosted environment. Learn more about Valen at www.valen.com and http://propertyright.valen.com.
FusionPR on behalf of Valen Technologies
310.481.1431, ext. 18