(Mediterranean jellyfish at Monterey Bay Aquarium, near the headquarters of Capital Insurance Group. Photo credit: Intandem.)
Capital Insurance Group (CIG), a Monterey, Calif.-based property/casualty insurer serving the Western U.S. since 1898, has implemented the Predict and Manage applications of Valen Analytic’s (Denver) InsureRight Platform to strengthen personal automobile insurance underwriting. The insurer deployed the capabilities within six months.
Capital Insurance Group has enjoyed a long period of success through profitable growth but will need more than good relationships to maintain its competitive edge in a changing insurance environment, affirms Andrew Doll, VP and Chief Actuary, CIG, commenting on the carrier’s adoption of Valen solutions.
“We required a more efficient and accurate means of assessing risk,” Doll comments. “Valen provided us with a solution that accomplished what we needed, and their analytic ability and turn-key deployment technology provided us much quicker speed to market than if we had done this on our own. Within six months, we had a model developed and a system operational, hitting all timelines established at the start of the project.”
Confidence to Automate Pricing Decisions
Valen describes the InsureRight Platform as insulating insurers from the effects of adverse selection, occuring when a competitor undercuts the incumbent’s pricing on the best risks and avoids writing poor performing risks at inadequate prices. The platform’s Predict application serves individual policy risk selection and pricing decisions, while the Manage application provides leading indicators of overall performance, so insurers can positively manage their portfolio and underwriting results. The Predict application gives companies the confidence to automate many pricing decisions and deliver faster response times to agents, according to the vendor.
“We applaud CIG’s commitment to strengthening their underwriting performance,” comments Dax Craig, CEO, Valen Analytics. “Personal lines was the first line of P/C insurance to face market share consolidation as a result of analytics, and the only way to stay competitive in this kind of environment is to ensure you’re using data-driven tools.”