You are playing an unfair game called information asymmetry. The deck is stacked against insurers who are the last in line to receive the necessary data to build an accurate risk profile.
Information Asymmetry

The insured knows 100%, agent knows a smaller percentage and the insurer gets an even smaller subset of the information.

And now the world is moving to collecting even less information upfront before offering quotes and promising services. The need for reliable data to make critical real-time decisions has never been more important.

 

Valens Data Capabilities Infographic

 What does a data consortium have to offer?

A broader view
Assuming you have enough data to power a predictive model, it is still limited to one view of the market. You know about the risks you write, and some about the risks you quote. But, nothing about the risks you didn’t quote. In a consortium, you have access to a representative view of the entire market.
 

Predictive horsepower
Modeling algorithms built from consortium data offer something unique that is not possible when working with a single insurer’s data set – proprietary predictors. Valen has developed over a thousand predictive variables derived from the consortium that are leveraged for individual clients, depending on their business goals.That broader view and enhanced predictive power leads to long-term, market-leading results in terms of underwriting profit and growth. Check out our latest ROI Study.

 

Valens Data Capabilities Infographic

 How much data is in the consortium?

There is $67B in premium across all standard property and casualty lines of business.

 

Valens Data Capabilities Infographic

 What’s NOT included in Valen’s data consortium?

    • There is no identifiable information about which insurer wrote a policy.
    • There is no personally identifiable information (PII) about a policyholder.
    • There is no information on rates or pricing. Another way of putting it, any decision you make based on the data analytics is excluded from the consortium.
Valens Data Capabilities Infographic

 Can a competitor determine which policies are mine by accessing the consortium?

No, consortium data is fully anonymized, and every data file includes a multiple and diverse set of insurers that make it impossible to re-engineer the original source of any data.

 

Valens Data Capabilities Infographic

 Will you use my data to build a model for my competition?

No, every model is built on a unique data set that pulls from multiple sources. To ensure the diversity of the data set, sampling profiles are identified with each customer by policy size, exposure type, geography, etc.

 

Valens Data Capabilities Infographic

 Does our model offer us a competitive advantage when others use the same consortium?

Yes. Valen conducted study to answer the question: Is a predictive model resilient to a direct competitor who also has a model? The results showed that competitive differentiation comes from models customized to an insurer’s goals and combined with their team’s expertise. Advanced analytics enhances decision making and improves your ability compete. Check out our brief Model vs. Model video and our 2017 Outlook Report.

 

Valens Data Capabilities Infographic

 How much data is required to build a predictive model?

It depends, of course. For a standard pricing model, we recommend a minimum of 10,000 claims (which requires hundreds of thousands or millions of policy terms.)

A model is only as good as the data upon which it is built. Simply put, the more data, the better. Many carriers leverage our consortium to augment their own data and fill in gaps, which even the largest insurers experience. If you are planning to expand into new geographies, sell up or down market, cover new exposures, or make a change in risk appetite, consortium data can fill in the blind spots.

Having a broader data set at your disposal also supports testing to prove/disprove hypotheses and proof points, delivering answers to solve your specific business problems.

 

Valens Data Capabilities Infographic

 What 3rd party data sources are used?

We can append any third-party data source, and regularly pull from a number of sources, including:

    • There is no identifiable information about which insurer wrote a policy.
    • There is no personally identifiable information (PII) about a policyholder.
    • There is no information on rates or pricing. Another way of putting it, any decision you make based on the data analytics is excluded from the consortium.

We transform external data and combine it with insurance data to build highly predictive variables not found anywhere else.

 

Valens Data Capabilities Infographic

 Does a model from Valen have to be built with consortium data only or can I add my own unique or 3rd party data?

The use of consortium data is always optional. Your unique business may demand unique data sources and Valen can support that. We build models on the data of our customer’s choosing.

 

Valens Data Capabilities Infographic

 Do I have to contribute my data to work with Valen?

Absolutely not. Valen serves the market with a broad range of capabilities, including building models solely on a client’s data. We also support deploying internal or third-party models with the InsureRight platform.

 

Valens Data Capabilities Infographic

 Do I have to contribute data to join the consortium?

Yes. Everyone who leverages the consortium data or any derivative product (proprietary variables, appended columns of data, etc.) agrees to contribute data.

 

Valens Data Capabilities Infographic

 How do you store my data? Is it secure?

Valen adheres to best practices around information and data security. We have a multi-tenant private cloud with co-location facilities. We meet the rigorous data security requirements of our clients in the financial services industry.

 

What data is in the consortium?

Our consortium consists of data from a diverse set of more than 50 insurers.

Premium = $67B
Policy Terms, Recent & Detailed = 29M
Claims = 2.8M
Audits & Inspections = 3M

Premium = $2.4B
Policy Terms, Recent & Detailed = 2.6M
Claims, Recent & Detailed = 374K
Incurred Losses = $1.7B

Premium = $33B
Policy Terms, Recent & Detailed = 4.2M
Claims = 2.8M
Audits & Inspections = 2.5M

Premium = $31B
Policy Terms, Recent & Detailed = 22M
Inspections = 540K

Premium = $795M
Policy Terms, Recent & Detailed = 674K
Claims, Recent & Detailed = 382K

Premium = $286M
Policy Terms, Recent & Detailed = 420K