iPremium - Insurance Premium Leaks

Americans lead dynamic lives. Besides our demographic landscape is constantly shifting as new immigrants come in to this country and join our work force, culture and tradition. On average, in any given hour on any given day, the following changes are likely occurring:

• 254 Marriages
• 124 Divorces
• 25,608 Vehicle Registrations
• 6,402 Vehicle Changes
• 163 Drunk Driving Incidents
• 445 New Drivers
• 2,800 Auto Claims
• 6,526 Job Changes
• 3,453 Moves

How can any auto insurer keep pace with these changes? In our experience, they simply cannot. Industry study reveals that on an average over 80 percent of policies lacking enough premium to cover the intended risk. In fact, several industry studies show that, in 2005, the private passenger auto insurance industry lost $16.1 billion due to premium rating error, which represents over 9% of the total $163 billion in personal auto premium written that year. How much can the insurance industry afford to lose?

The proposed solution should help insurance companies to address the three items discussed above – Number of miles driven, Where is the car garaged, and Who are the drivers? The solution map is combination of BPO service and rule based technology that fuses a number of external data sources with customer database. By applying business rules and predictive modeling technique, we can address perhaps 30 – 40 % of the target policies. Since a typical insurance company has millions of policies, predictive modeling is critical in identifying the “low hanging fruits” and executing a successful BPO campaign.

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