CompWest Insurance Company (Newport Beach, Calif.), an operating company of Accident Fund Holdings, Inc. (Lansing, Mich.), will implement Denver-based Valen's InsureRight predictive analytics solution as a foundation for the carrier to assess new growth opportunities and more accurately price its current book of business, according to a vendor statement.
"As pricing firms up in the workers' comp line, we believe the carriers best able to capitalize on the next part of the market cycle will be those who can understand loss cost trends and deploy their capital accordingly," comments Chris Folkman, managing director, CompWest Insurance. "Combining the power of predictive analytics with our strong underwriting discipline is what will set us apart from other comp writers, and we're thrilled to partner with Valen to help us get there."
[For more on analytics and underwriting: Verisk Analytics Launches Verisk Underwriting Solutions Division.]
InsureRight allows underwriters to score policies on two fronts, according to Valen. First, carriers can more efficiently identify risks for new and renewal policies and price according to risk in order to improve loss ratio performance, the vendor claims. Second, they can identify policies likely to have misclassified exposure and provide agents and underwriting the ability to correct exposure misclassification prior to providing final pricing, the vendor adds. Both of these scores facilitate a quick turnaround time and the ability to positively impact a carrier's overall pricing accuracy.
"We performed a blind test of InsureRight's output against our actual loss results, and the model accurately sorted our insured risks," adds CompWest's Folkman.