(Photo credit: Doordoctor.)
Willis Towers Watson (London), a global advisory, broking and solutions company, has forged a strategic alliance with e2Value (Stamford, Conn.), a provider of web-based property valuations and data, to create Structure Insurance Score for the U.S. property insurance market. The score measures risk inherent to a property insurer based on several unique characteristics of a home or building that are traditionally not recognized as rating factors. The first generation of the solution addresses residential risks, with scores for farm and commercial property risks to be added later.
“We’re excited about our alliance with e2Value, which keeps us at the forefront of collecting and analyzing data for insurers, this time for the property line, by strengthening their ability in the ratemaking and underwriting processes,” comments Klayton Southwood, director, Property & Casualty practice, Insurance Consulting and Technology, Willis Towers Watson. “We continue to create innovative ways for insurers to more efficiently price their business. Our Structure Insurance Score will utilize our in-house advanced analytics capabilities to benefit all parties in the property insurance chain.”
Willis Towers Watson reports that e2Value will capture the aforementioned unique building characteristics that insurers will use in the rating of homeowners and dwelling fire policies, then use these collective characteristics to calculate replacement cost. Willis Towers Watson will contribute its advanced analytics capabilities—which exceed the sophistication of those generally used by carriers internally for pricing, to develop the score.
Truly Predictive Score to Improve Segmentation
“By using more unique characteristics incorporated into the Structure Insurance Score, property insurers will improve rating beyond what they’re currently doing and add measurable lift above traditional ratemaking models,” comments Todd Rissel, CEO, e2Value. “It’s truly predictive and will improve the segmentation of their books.”
The primary challenge with variable characteristics is finding meaningful and reliable structure data to use without it being provided by a policyholder, Rissel explains. “In a world of apps that help with all aspects of our lives, policyholders are moving to providers who offer easy-to-use and focused applications and rates,” he elaborates. “The Structure Insurance Score is another way to better align rates as well as the quoting and renewal process. From the policyholder to the producer to the carrier, we love working with Willis Towers Watson to help carriers attract and retain clients.”