Insurance Rating Methodologies
The profitability of insurance portfolios is directly linked to the quality of the rating methodologies employed. Brolink maintains an extensive database of all the key data elements required to determine risk profiles, claims patterns and loss ratios. We analyse this information from the geographic location down to individual characteristics of the item insured, resulting in the construction of rating engines that deliver sustained profitability of the insurance portfolios under our management. For those insurers who manage their own rating engines via so called “Black Boxes” for some or all of their products, we have built interfaces into Websure to communicate in real-time with these engines.
Utilising these interfaces, Websure is able to apply the “Black Box” rating outcomes to the underlying risks. Brolink has also developed a Lifestyle based rating methodology known as Nostradamus™, which is a client profiling utility that is interfaced to TransUnion ITC to obtain lifestyle parameters. These, together with other criteria such as claims behaviour are used to accurately predict loss patterns for a client. This analysis assists in the correct setting of insurance rates for the portfolio, leading to improved profits for the insurance companies. Introducing Nostradamus, will enable you to:
- Profile your clients, leading to increased profitability.
- Improve insurance quotes conversion rates.
- Improve the average premium.
- Reduce loss ratios.
- Reduce unpaids and lapse ratios.
- Reduce your administration expenses.
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