Data and Analytics Company Launches First-to-Market Solution to Analyze Loss-Free Policies, Delivering Significant Loss Ratio Improvements
DENVER – July 9, 2014 – Valen Analytics, a provider of proprietary data, analytics and predictive modeling to help insurers manage and drive underwriting profitability, today announced its new Risk Score for workers’ compensation within the InsureRight Platform. Last updated in 2010, the new Risk Score is bolstered by over a thousand new variables, allowing underwriters to select and price policies more accurately, and boasts a 3x improvement over Valen’s current Risk Score. The Risk Score is a comparison tool that separates good risks from bad on new and renewal policies. The best risks are defined as those within the top 10 percent of premium and the worst risks represent the bottom 10 percent of premium, in terms of loss ratio performance.
As a market leader in advanced data strategies in workers’ compensation, Valen built the InsureRight Platform using its contributory database, which represents the largest and most robust data consortium specifically built for predictive analytics. Insurers use the Risk Score for actionable and proprietary insights on individual policies and their entire portfolio, while avoiding the inherent sample bias from relying solely on their own data. In addition to sourcing from Valen’s extensive in-house database, the Risk Score also incorporates external data sources. This comprehensive data strategy drives pricing accuracy and business growth while allowing insurers to achieve efficiencies in underwriting decision-making.
Marking an industry first, the new Risk Score provides workers’ compensation insurers with better insight into historically loss-free policies and enables underwriters to distinguish between risks even when the policy holder is claim-free. The Risk Score accurately identifies a 30 percent loss ratio difference between the best and worst performing policies.
“We are building a partnership with insurers around actionable data,” said Dax Craig, President and CEO of Valen Analytics. “Everyone benefits when insurers come together to pool their data, because it opens doors to solutions that push the industry forward. Valen’s new Risk Score is the next frontier, and a perfect example of how working collaboratively with insurers helps the market overall by using data to predict what will happen on loss-free policies.”
Valen’s growth in new insurers joining the data consortium has grown at a 40 percent compound annual growth rate since 2010. This momentum allows Valen to better serve customers with scientific credibility and proprietary market insights. As an innovator in data and analytics, Valen aims to solve the biggest challenges insurers face, including the ability to grow into new segments, the ability to protect profitable market share by keeping up with the technological advances of competitors, and the capacity to improve efficiency in underwriting. Valen’s sophisticated analytics platform allows customers to implement a predictive model in just two months. More information can be found online.
About Valen Analytics
Valen Analytics is an advanced data and analytics provider for property and casualty insurance companies. We work with insurers who are actively looking to improve underwriting profits by driving growth and/or lowering their loss ratio. Our customers are focused on increasing competitive pressures, fighting adverse selection with innovative solutions, and raising awareness for the impending ‘experience gap’ in underwriting with initiatives such as Tomorrow’s Talent Challenge. Our customers span many lines of business including Homeowners, Workers’ Compensation, Commercial Auto & Telematics, Commercial Package, Commercial Property, and BOP. Learn more about Valen at www.valen.com.
Fusion PR on behalf of Valen Analytics