Valen Analytics, a provider of proprietary data, analytics and predictive modeling for property and casualty insurers, has launched Risk Score for commercial auto insurance within its InsureRight Platform.
The predictive models offer underwriters the ability to look into risk selection and pricing, as well as a provide an explanation of the risk quality associated with each policy. The Risk Score for commercial auto uses a data consortium with $2.5 billion in premium and $1.7 billion in claims, and is custom built for insurers of all sizes, based on their portfolio and business strategy.
The commercial auto data consortium consists of recent and detailed policy, vehicle, and claims data from 2005 – 2015. Additional data elements include regional demographic characteristics, Safety and Fitness Electronic Records (SAFER) inspection and crash information, vehicle size, trailer units and unit age. Forty-seven garaging states are represented – including local, intermediate, and long driving distances.
The InsureRight Platform identifies the highest risk policies (top scoring 10 percent of premium) and the best risks (lowest scoring 10 percent of premium). Insurers can use this classification of risk for policies in commercial auto to identify and price policies with heavy future losses, or replace them with better performing policies.