Valen Customers Achieved 53% Premium Growth While Maintaining Lower Loss Ratios than the Market Average
DENVER – May 31, 2018 – Valen Analytics®, an Insurity company, and provider of proprietary data, analytics and predictive modeling for P/C insurers, today announces the results of the company’s third annual ROI study, which highlights the evolution of data-driven insurers and their ability to consistently outperform the market. From 2012-2017, Valen customers collectively saw loss ratio improvement of 3-9 points better than the industry average, while achieving 53% direct written premium growth, compared to 18% growth for the market. Results were calculated from 20 workers’ compensation customers, totaling $1.8 Billion in premium.
For the first time, Valen’s study isolated insurers with profitability challenges prior to the implementation of a predictive analytics program. On average, this group of insurers experiencing loss ratios of 60% or more, dramatically improved loss ratios to mirror the market average within the first year (from 2012-2013). They were also able to continuously outperform the market each subsequent year through 2017. This highlights the significant immediate and long-term impacts of predictive analytics solutions.
“The results of our studies have repeatedly quantified the unparalleled top and bottom line results for data-driven insurers,” says Kirstin Marr, president of Valen Analytics. “This year, we’ve taken the data further to display how our customers consistently grab profitable market share and beat the competition by more accurately aligning price to the risk exposure.”
This is the third consecutive year that Valen has studied its client base. Previous iterations of the study demonstrated similar and consistent improvement in loss ratios and profitability. Insurance carriers included in the study have been engaged with Valen Analytics for 2 – 5+ years.
“Whether incorporating standalone products or a holistic solution, we offer insurers a deep understanding of the insurance market that meaningfully impacts top and bottom line results,” said Michele Shepard, Chief Revenue Officer at Insurity. “From analytics that allow insurers to more accurately understand their risks through cloud initiatives that expedite implementations and lower TCO, the Insurity product suite continues to demonstrate tremendous value to our customers.”
About Valen Analytics
Valen Analytics, an Insurity company, provides proprietary data, analytics and predictive modeling for property and casualty insurers. We work with insurers who are actively looking to utilize modern approaches to pricing, risk selection, claims triage, and premium fraud. Our customers are focused on increasing competitive pressures, fighting adverse selection with innovative solutions, and raising awareness for the impending “experience gap” with initiatives such as Insurance Careers Movement. Our customers span many lines of business including Homeowners, Personal Auto, Workers’ Compensation, Commercial Auto, Commercial Package, Commercial Property, and BOP. Learn more about Valen at www.valen.com.
Insurity, Inc. enables property & casualty insurers to modernize their enterprise and achieve their business goals. Insurity’s core processing applications and data integration and analytics solutions are backed by rich insurance expertise and are in production with over 100 insurers, processing billions of dollars of premium each month. Insurity’s solutions address the needs of all carriers – from the Top 20 insurers to small or regional commercial, personal, or specialty lines writers, as well as MGAs. For more information about Insurity, call 860-616-7721 or visit insurity.com. Connect with Insurity on Twitter, LinkedIn and Facebook.