Valen Analytics, a company offering data and analytics for P&C insurance, has released Risk Score for workers’ compensation within the InsureRight Platform.
Risk Score is a comparison tool designed to separate good risks from bad on new and renewal policies. The best risks are defined as those within the top 10 percent of premium, and the worst risks represent the bottom 10 percent of premium, in terms of loss ratio performance. Risk Score now includes more than 1,000 new variables, allowing underwriters to select and accurately price policies. Valen said that this latest version is a three-time improvement over its current Risk Score.
Insurers use Risk Score for insights on individual policies and their entire portfolios, avoiding relying solely on their own data. The application incorporates external data sources, and sources Valen’s in-house database as well. Risk Score provides workers’ compensation insurers with insight to historically loss-free policies. It enables underwriters to distinguish between risks, even when the policyholder is claim free. A 30 percent loss ratio difference between the best and worst performing policies is identified.
Valen aims to build partnerships with insurers around actionable data, said the company. Risk Score is an example of how working collaboratively with insurers helps the market overall by using data to predict what will happen on loss-free policies, the company said.
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