Ever since the Covid pandemic began carriers have been struggling with regulators about rates. And in no place has the struggle been greater than in California where to get a modest 6.9 rate increase Allstate has had to play a game of ‘chicken’ with the regulator by refusing to write any new auto business in the state until rate relief was granted. And yet we suspect the increase is nowhere near enough to match their losses.
We believe that carriers need to be better prepared for these types of situations. They need to be able to continually risk-adjust the flow of business as conditions change during the rate cycle. They must be able to risk-segment their customers much more finely and rapidly adjust their interactions with them to target a consistent return, for example, strategies in the current California environment could be to avoid business that is likely to ‘churn’ or to intensify their virtual underwriting interventions to reduce the risk variance of new business.
idFusionTM lets Personal Lines insurance business users identify and build highly targeted risk selection and virtual underwriting solutions in days without IT resources. Solutions that let you drive down loss ratios, deter fraud and unmanaged risks and reduce costs so you can convert more of the business you want. www.veracityid.com
