SAN FRANCISCO, CA--(Marketwire - April 7, 2008) - Auto insurers focused on eliminating
rating errors introduced during the sales process now have a new weapon to
identify inaccurate or fraudulent information. In a move that places
advanced data analytics techniques on the front line of auto insurance
sales, Quality Planning Corporation (QPC) is introducing QPConfirm®.
QPConfirm works in conjunction with an insurer's existing sales process and
systems to flag questionable policyholder information when it is first
provided. During the new business application process, QPConfirm reviews
select rating elements, such as annual mileage, commute distance, and
business use for accuracy, currency, and legitimacy. Within seconds, the
new-account representative (or, in some instances, the underwriter)
receives an analysis of the reviewed data that highlights potentially
flawed, false, or incorrect policyholder information.
QPConfirm works in real time, uncovering costly insurance premium rating
anomalies by comparing rating information provided at the point of sale
with QPC's proprietary analytics and databases, and other independent data
sources.
"QPC's unique approach to validation of customer data at the point of sale
uses a real-time application of sophisticated database matching,
statistical analysis, and data modeling to identify and recover auto
premium leakage," said Bob U'Ren, senior vice president of underwriting and
business development at QPC. "This enables auto insurers to focus on
specific, high-recovery objectives, determine premiums appropriate to the
risks they are assuming, and create sustainable competitive advantage."
A recent
study(1) conducted by QPC revealed that a substantial number
of rating errors are introduced during the sales process. QPC's research
revealed that underwriting new customers without conducting thorough audits
is risky -- and potentially costly. Quite often, the initial rating
information is suspect and will result in an underpriced policy at best,
and quite likely in losses that eliminate any possibility of first-year
profitability. QPC's audits have shown that new business booked at
inadequate rates costs auto insurers hundreds of millions of dollars each
year. The primary cause of the inadequacy is
non-verified information that is false, dated, or incomplete.
Until now, those errors were hard to detect and remained invisible until a
rigorous check of policy information was conducted 6 to 12 months later. By
placing sophisticated rating integrity technology at the front end of the
customer life cycle, insurers can realize the following benefits:
-- accurate initial pricing;
-- early identification of true risk;
-- improved rating integrity;
-- significant premium uplift;
-- lower loss and combined ratios.
QPConfirm is available to companies of all sizes and in all states. For
additional information, contact Mike West at 415-268-8643 or visit
www.qualityplanning.com.
About Quality Planning Corporation
An ISO business, QPC is focused exclusively on providing rating integrity
solutions to auto insurers. QPC works with insurance companies to identify
areas of significant premium leakage using sophisticated database
management, statistical analysis and modeling, customized survey design,
and highly targeted customer interaction. QPC helps clients maximize
revenues from existing rating plans and charge fair prices to policyholders
based on a true representation of risk. QPC was founded in 1985 and is
headquartered in San Francisco. For more information, visit
www.qualityplanning.com.
About ISO
A leading source of information about risk, ISO provides data, analytics,
and decision-support services to professionals in many fields, including
insurance, finance, real estate, health services, government, human
resources, and risk management. Using advanced technologies to collect,
analyze, develop, and deliver information, ISO helps customers evaluate and
manage risk. The company draws on vast expertise in actuarial science,
insurance coverages, fire protection, fraud prevention, catastrophe and
weather risk, predictive modeling, data management, economic forecasting,
social and technological trends, and many other fields. To meet the needs
of diverse clients, ISO employs an experienced staff of business and
technical specialists, analysts, and certified professionals. In the United
States and around the world, ISO helps customers protect people, property,
and financial assets. For more information, visit
www.iso.com.
(1) Getting Off to a Clean Start: Why Point-of-Sale Verification Improves
Pricing Accuracy. Quality Planning Corporation, April 2008. (This white
paper is available at
www.qualityplanning.com)
Contact Information: Contact:
Tim Cox
Zing Public Relations
650-369-7784
