The personal lines property and casualty insurance market is at a breaking point. Catastrophe losses are mounting, regulatory pressures are shifting, and economic forces are squeezing profits. Insurers have always chased “good risks,” but with today’s volatility, there simply aren’t enough to go around. The real challenge is transforming flawed risks into profitable ones – before they spiral into losses.
Take the recent Los Angeles wildfires, which hit Travelers Companies with $1.7 billion in claims. Despite the massive loss, Travelers has yet to announce rate hikes or risk mitigation moves, highlighting the difficult balance insurers must strike between managing exposure and keeping customers. Meanwhile, already high auto repair costs are poised to move higher – driven by likely tariffs on imported parts – these cost increases are pushing car insurance premiums higher, forcing carriers to recalibrate their pricing models.
There’s a little good news on the horizon – but to what end? AM Best recently upgraded its outlook for the personal lines market from negative to stable, citing improved pricing in auto insurance. But the shift comes after years of upheaval from inflation, supply chain breakdowns, and widening underwriting gaps. Carriers that fail to proactively manage risk could find themselves on the wrong side of this stabilization.
The problem? Most insurers don’t have the tools to fix flawed risks at scale. Core systems weren’t built to analyze and correct risk in real time. They process transactions, not insights. Adjusting them is slow, expensive, and rarely delivers the agility underwriters need. That’s where idFusion comes in.
Built specifically for underwriters and product teams, idFusion turns flawed risks into profitable ones – without waiting for IT. It allows insurers to:
Spot and fix underwriting flaws at the point of sale using a library of pre-developed interventions.
Test and deploy new risk solutions quickly, before losses escalate.
Measure financial impact in real time, ensuring each fix adds to the bottom line.
High level, it works in practice, like this: An insurer detects a cluster of bad outcomes. Instead of waiting for losses to pile up, they use idFusion to draft and test a correction, monitor the impact, and roll it out – all without the time and uncertainty of in-house IT involvement.
With catastrophe risks rising and underwriting pressure intensifying, carriers that react too slowly will lose. idFusion offers a way to get ahead – turning flawed risks into good ones, before it’s too late.
VeracityID offers idFusion which gives Personal Lines Auto and Home carriers the ability to detect, intervene and resolve high risk and high value opportunities during application, endorsement and renewal. Our idFusionTM platform lets Underwriting, Product and Claims teams collaborate to create specific risk solutions without costly, time-consuming IT intervention.
