Insurance Services Office Inc. (ISO) has acquired Quality Planning Corporation (QPC), a San Francisco-based provider of analytic methods for helping auto insurance companies achieve greater rating integrity. Terms were not disclosed.
QPC’s proprietary analytic methods significantly reduce premium “leakage” in personal auto insurance by: identifying likely rating errors through the Risk:check solution, and correcting those errors using the Precision Re-Underwriting tool.
Incomplete or incorrect information about auto insurance rating— such as driver identity, garage address and distance driven—leads to billions of dollars a year in uncollected premium, according to QPC.
QPC maintains more than 200 different policy-validation databases. Risk:check’s pattern analysis flags questionable rating patterns, estimates the probability an actual error will be found and calculates the likely associated premium recovery.
Precision Re-Underwriting produces an automated re-underwriting plan tailored to each policy containing potential errors. The Precision Re-Underwriting process includes uniquely scripted and dynamic interview guides for customer contact to correct the errors.
QPC President Dr. Daniel Finnegan said he is delighted to become part of the ISO family. “As part of the larger ISO enterprise, QPC can grow and deliver more value to insurers by linking our products to an array of ISO solutions. ISO’s sterling reputation and leadership position throughout the property/casualty insurance industry and its vast expertise in managing and delivering data and analytics will significantly strengthen QPC’s ability to serve customers,” said Finnegan.
Frank J. Coyne, ISO’s chairman, president and chief executive officer, hails the acquisition as “an ideal match for ISO.” Coyne said QPC’s models will be enhanced through access to ISO’s vast repository of insurance data and records.
“ISO is focused on delivering high-value analytic methods to the property/casualty industry. QPC will add to ISO’s growing suite of analytic methods for the property/casualty industry and complement a number of recent innovations,” said Coyne. Among the innovations he cites are ClaimDirectorSM, a claim scoring product; the Underwriting Risk Model (URM), used by insurers and reinsurers to measure and manage underwriting risk; and ISO HomeValueTM, a new replacement cost estimator for personal property.
“The ability to identify and greatly reduce premium leakage—and recover appropriate premium through a statistically sound, validated rating-integrity tool—is a valuable way insurers can boost revenue and create sustainable advantage,” ISO’s CEO said.
ISO was attracted to QPC because of the company’s innovative technology, successful record serving leading auto insurers, and high-quality management. Finnegan and the members of QPC’s leadership team bring extensive experience in the areas of insurance underwriting and claims, statistical analysis, quantitative methods, research and technology, according to Coyne.
QPC will remain in San Francisco, operating as a wholly-owned ISO subsidiary. Finnegan stressed the transition to ISO ownership would be seamless for existing customers.
Was this article valuable?
Here are more articles you may enjoy.