In an effort to accelerate the speed, scope and profitability of its automobile insurance underwriting process, Amica Mutual Insurance Company said it has purchased and installed San Rafael, Calif-based Fair, Isaac and Company’s ClickPremium™ underwriting solution.
ClickPremium will provide Amica, the nation’s oldest mutual insurer of automobiles, with real-time decision-making power at the point of sale, including sales over the Internet. Amica’s decision to utilize ClickPremium is based, in part, on the company’s customer-driven business philosophy and its objective to build its consumer franchise.
Historically, Amica has operated exclusively on a referral basis, but with competition among insurers increasing rapidly — particularly in the online price war for customers — Amica’s most recent move is expected to provide a strong competitive edge for the company.
Industry analysts at TowerGroup expect the market for online automobile insurance to reach $10-$15 billion by the year 2006.
This latest agreement builds on an ongoing relationship between the two companies that began in 1996 with the development of a suite of custom analytics by Fair, Isaac to help Amica improve its loss ratios.
Introduced last year, Fair, Isaac’s ClickPremium gives insurers the ability to automatically quote, underwrite and bind policies using application information as well as external information needed to make a decision, from insurance bureau scores to motor vehicle reports to loss information.
According to Fair, Isaacs, companies can use ClickPremium to set and change underwriting rules, determine when to route policies for further review, establish tiers of risk and acceptance, and even generate guidelines for cross-selling. Because decisions are made at a single source, an insurer’s offers are consistent across all delivery channels–agent, customer service representative or website.
This centralized “e-decisioning” enables rapid response and follow-through, strengthening an insurer’s service and improving customer relationship management.
Fair, Isaac has offered the insurance market risk and marketing solutions for over a decade. Today, Fair, Isaac solutions are behind underwriting, policy renewal and marketing decisions for hundreds of insurers, including 80 percent of the top U.S. personal line insurers. It is a global provider of customer analytics and decision technology. Fair, Isaac reported revenues of $298 million in fiscal 2000.
Amica Mutual Insurance Company, the nation’s oldest mutual insurer of automobiles, was founded in 1907. The company, with corporate headquarters in Lincoln, Rhode Island, is a national writer of automobile, homeowners, marine, and personal excess liability insurance. Life coverage is available through Amica Life Insurance Company, a wholly owned subsidiary. Amica employs almost 3,500 people in 42 offices across the country.
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