The best risk data for underwriting is customer interaction data
McKinsey argues that external data plays a pivotal role in enhancing the effectiveness of artificial intelligence within Property and Casualty (P&C) Insurance underwriting. While this holds merit, our empirical observations in P&C Personal lines suggest that customer behavior at the point of sale (POS) and during endorsements often offers superior insights into customers' true intentions and attractiveness.
Watch Out for Wolves Amongst the Sheep: Both Good & Bad Risks Are Shopping
Costs are shooting up, customers are getting sticker shock, and they're starting to shop around. Carriers need to get proactive about spotting both the bad and the good – avoiding the worst and keeping profitable customers for the long haul.
Superior risk selection lets Progressive grow consistently
P&C Specialist has a wonderful animation that illustrates how much better Progressive's market share performance has been than other top ten players over the last decade.
Branch continues its slide
The article delves into the consequences of overlooking the complex variations in risk, leading to vulnerability and potential setbacks for Insuretechs."
Auto insurance carriers are trapped on a terrible rate cycle roller because of a bad assumption about risk
What auto carriers are doing isn’t working. Except for Progressive. “Rate hikes not bringing profitability to auto insurers” – Fisk analyzed […]
Insurance AI risk scoring solutions have a problem, we have a solution
If this article is any indication, personal lines carriers have no idea how to eliminate algorithmic bias from their AI/Machine Learning risk […]
The more the policy “churn”, the more valuable micro-risk selection becomes
The Insurance Journal brings us the news that customers are upset by rapidly rising auto insurance rates and are doing something about […]
Why are tropical storm catastrophes so catastrophic for insurance carriers?
Hurricane Ian caused over $112.9 billion in damage, serving as a reminder how a single hurricane can derail a whole industry’s performance. […]
