(Detail from Grant Wood’s American Gothic, painted in Cedar Rapids, home of UFG.)
United Fire Group (UFG; Cedar Rapids, Iowa), a multiline insurer marketing P&C, life and annuities products nationwide, has licensed Valen Analytics’ (Denver) InsureRight platform to give its underwriters increased visibility into risk selection and pricing for commercial auto policies in order to protect its business from adverse selection, improve profitability and loss ratio performance.
“UFG is committed to helping identify the best tools for our underwriters to price risk, and Valen has proven to be exceptional at working with underwriters to enhance their experience using modeling,” comments Mike Wilkins, EVP and COO, UFG. “We chose Valen’s solution because it provided the advanced ability to accurately segment customers and potential customers based on loss propensity as well as their reputation of working closely with clients to customize the best implementation plan for the organization.”
Valen’s custom predictive models are hosted on the InsureRight Platform and integrate directly into the underwriter’s workflow, allowing for what the vendor calls real-time decision support. This capability helps predict risk characteristics of an account reliably in order to drive the best business, according to Valen. UFG can now segment customers into appropriate risk buckets with a wide range of data that combines underwriting experience with predictive modeling.
Identifying Profitable Risks
“There are profitable risks to be found in every vehicle class, even higher risk accounts, as long as they are priced appropriately,” comments Dax Craig, CEO, Valen. “Through our partnership with UFG, we will combine their underwriting expertise with the advanced analytics of Valen’s platform to help identify these risks and price them in a way that maximizes business value and promotes overall growth.”