Denver, CO--Valen Technologies, a provider of intelligent predictive analysis and decision enabling software, announced the availability of a premium modification module for its predictive underwriting software, Risk Manager. The new module develops a sophisticated, multivariate pure premium model that underwriters use on a daily basis to surcharge and discount policies more effectively.
Underwriting profitability correlates not only to underlying risk but also to a carrier's ability to price-to-risk properly. Setting premium arbitrarily too high or too low can cause a carrier to lose customers to competitors or conversely lose money by not pricing to-risk-properly. To make policy decisions today, most underwriters use personal experience coupled with their firm's underwriting manuals. In some cases, insurance carriers have implemented rules-based underwriting systems, rating engines and/or scheduled rating systems. While these technological approaches are generally more accurate than an underwriter's intuition, they still rely heavily on human experience to develop their underlying rules.
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