AmFed Taps Valen Analytics to Improve Underwriting Results

The Mississippi-based workers’ comp insurer implemented the solution within 45 days, giving its underwriters better visibility into risk selection and pricing on new and renewal policies.

(Balloons near Ridgeland, Miss., home of AmFed. Source: Mississippi Ballooning.)

AmFed, a Ridgeland Miss.-based workers’ comp insurer that also provides third-party administration services for self-insured groups and individual self-insureds has licensed the Predict application of Valen Analytics’ (Denver) InsureRight Platform for workers’ compensation. The carrier seeks to provide its underwriters with better visibility into risk selection and pricing on new and renewal policies, according to a vendor statement.

Valen reports that its custom-built predictive model is hosted entirely on the InsureRight Platform and integrated directly into the underwriter’s workflow, allowing for real-time decision support. Since AmFed customers are primarily construction related, Valen’s platform has been crucial in providing data and performance indicators on high hazard class codes, the vendor says. Valen adds that the implementation allows expansion into other areas of business while enabling faster and more informed decisions on those policies.

“At AmFed, we pride ourselves as being a leader in our field and bringing innovative ideas to our customers and clients. We decided that in order to remain competitive in the current insurance environment, we needed a robust predictive analytics tool to help our underwriters analyze risk and project the potential profit,” comments Billy Roberts, president and CEO, AmFed. “This was a big investment for us, but we are confident that by partnering with Valen, we can bring our customers even greater value and help us identify the right opportunities in states we are not currently writing coverage.”

Up-and-Running in 45 Days 

Dax Craig, CEO, Valen Analytics.

Dax Craig, CEO, Valen Analytics.

Relying on Valen’s consultation, AmFed was able to complete implementation within 45 days, as compared to the alternative of an internal or consultant-built model that could take nearly 18 months, the vendor asserts.

“AmFed identified a real need for predictive analytics and was extremely proactive about finding the right partners with which to build a model,” comments Dax Craig, CEO, Valen Analytics. “Not only will AmFed improve their competitive advantage through the use of analytics, but the implementation will protect their existing business as well. The market and competitors are becoming more savvy with every passing day, and if traditional carriers hope to follow suit, they must adopt a data-driven mindset.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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