Company Forecasts Challenges and Opportunities for Personal Lines – Shifting Landscape Drives Need for Data and Analytics in Homeowners
DENVER – January 15, 2014 – Valen Analytics, a provider of proprietary data, analytics and predictive modeling to help insurance carriers manage and drive underwriting profitability, today issued its 2014 Outlook: Personal Lines report, outlining the trends and top challenges the industry is facing in the new year. Given the investment environment, increasing regulatory pressure and rising costs, underwriting profitability is front and center for carriers. Homeowners insurance, in particular, shows significant growth potential, and will be a major focus for personal lines carriers in 2014. With a reputation of volatility and poor performance within the homeowners line of business, Valen’s report highlights the need for carriers to be technology-focused and analytically-driven in order to grow profitable market share. The major trend developing is carriers adopting a much more systematic and strategic approach to non-catastrophe risks.
“As we’ve seen in the auto insurance market, the companies that utilize data and analytical tools to assess the best risk are the ones that rise to the top,” said Dax Craig, President and CEO of Valen Analytics. “As the industry’s attention now turns to improving the state of homeowners, it’s critical for carriers to consider new strategies to address non-catastrophe losses, which make up 61 percent of total losses today. At the risk of market share consolidation, now is the time for carriers to educate themselves about the new tools and underwriting approaches that are available in 2014.”
This new report sources Valen’s unique insights and various industry studies to explore shifting consumer demographics, increasingly stricter regulations, and the risk of market share consolidation that carriers must consider to ensure profitability. Below are the topics that the 2014 Outlook: Personal Lines report addresses:
Homeowners in the Spotlight
- Shifting Focus Toward Homeowners, Following Trends in Auto Market
- Consumer Demographics Changing the Game
Knowing Who and What You Insure
- Advancements in Advanced Data & Analytics
- What Florida Means Nationally for Non-Cat Risks
- Market Share Consolidation Concerns
- Reinsurance Considerations
- Regulatory Changes Heighten Need for Data & Analytics
Organizational Readiness & Talent Crisis
- Getting Ready for Advanced Data & Analytics
- Talent Crisis
The full 2014 Outlook: Personal Lines report is available here, along with several complimentary resources and studies on the latest underwriting techniques and pitfalls to avoid, which can be found on Valen’s website in the Resource Center at www.valen.com.
About Valen Analytics
Valen Analytics helps carriers manage and segment their portfolios in order to drive underwriting profitability. Valen’s InsureRight Platform is the only solution with proprietary insight into portfolio metrics and risk characteristics to identify pockets of pricing inadequacy and redundancy. A dynamic portfolio management tool provides access to Valen’s contributory database containing policy level analysis not available elsewhere. The Valen contributory database is anonymized and has scored over 20 million policies using robust predictive models in Homeowners, Workers’ Compensation, Commercial Auto, Telematics, Commercial Package, and BOP. Learn more about Valen at www.valen.com.