Valen Analytics Predicts Comp Risks with no Loss History
Workers’ compensation carriers can now accurately score a policy even where there is no loss history on the account, according Valen Analytics, a data analytics and predictive modeling firm for the property/casualty insurance industry.
Valen has released the latest in its suite of predictive models, the Unavailable Loss History Model, which it says is a “first-to-market” product.
Insurers quoting policies have traditionally viewed prior loss experience as a key parameter in evaluating the quality of risks. Yet, Valen says insurers can score up to 70% of small premium policies without any loss information. Valen says that its model, now in its fourth generation, employs a combination of third-party and synthetic variables derived from its own custom databases to deliver “highly accurate predictions for insurance policies without any loss history information.”
Valen said the model has been tested against a 10-year loss data set of approximately 650,000 policies representing $7.6 billion in premium. The new model is programmed to answer the question, “How do similar policies perform?” as an indicator of risk quality.
“With this latest solution, we are entering the next stage of industry innovation in predictive analytics,” said Kirstin Marr, president of Valen Analytics. “Being able to deliver valuable insights despite the absence of a key piece of information like loss history is a true testament to the power of partnering around data. As insurers pursue the small commercial market, the ability to accurately assess risk, while collecting less information on the application is crucial to gaining market share.”
According to Valen’s research, synthetic variables developed with Valen’s consortium data demonstrated up to 13 times more predictive power than variables built with policy-only data. Synthetic variables are built from computations of more than one variable and leverage the breadth and depth of experience in Valen’s own data consortium, which includes data from dozens of third-party sources and more than 60 insurers.
Valen Anaytics is an Insurity company.
Drone Base Buys Betterview Roof Inspection Software
DroneBase announced that it has acquired Betterview’s drone roof inspection software and services, establishing the company’s first foray into analytics services for insurance carriers.
Betterview will solely focus on its risk management platform, which is based on manned aircraft and satellite imagery, Los Angeles-based DroneBase said in a press release.
“Having worked with Betterview for almost two years, we have been impressed with their platform and its solutions,” stated Dan Burton, founder and chief executive officer of DroneBase. “We will continue to enhance the technology by pairing our trove of aerial data with analytics and artificial intelligence.”
The Betterview drone inspection software, now called DroneBase Insights, helps insurers and property managers assess damage and mitigate risk for commercial properties. The platform is currently used by carriers that include Berkshire Hathaway Homestate Companies, the company said.
David Lyman, co-Founder and CEO of Betterview, said the partnership will allow property and casualty insurers to triage their drone inspections by quickly identifying high-risk properties using Betterview’s platform.
“When carriers need to dig deeper, they can order a drone inspection from DroneBase and receive a detailed roof report that contains analysis along with high-resolution imagery,” he said.
By selling its software to DroneBase, Betterview has fully shifted its focus to its risk management platform, Drone base said.
Betterview was founded in San Francisco in 2014 by David Lyman and David Tobias. Nationwide Insurance was a major investor in the business.
CNA Introduces “Holistic” Cyber Threat Program
CNA has launched what it bills as a “holistic” cyber threat product, called CNA CyberPrep, that offers expert assistance to identify cyber threats and assist in mitigation and response.
The Chicago-based commercial lines carrier said the product is part of a suite of cyber liability insurance products and risk-control services. The risk management product follows guidelines established by the National Institute of Standards and Technology.
CNA said is has formed partnerships with cybersecurity professionals who have access to risk control information and service providers who can mitigate exposures. CyberPrep helps policyholders identify the strengths and weaknesses of their cybersecurity posture and recommend best practices, the carrier said.
The program uses “sourced experts” to help policyholders test their cybersecurity systems, develop policy and procedures such as password management, and educate employees. If an incidence occurs, CyberPrep will deploy “response vendors” to manage the impact.
“It is important to take a holistic view to cyber threats – no matter the size or industry of an organization,” stated Brian Robb, underwriting director and cyber industry leader.
About the photo: A sample image of Betterview’s Property Profile product taken from the company’s website.
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