IXI Enables Auto Insurance Marketers and Underwriters to Assess Claims Risk with Launch of Risk Assessment for Auto InsuranceT

IXI announces the availability of a new tool, called Risk Assessment for Auto Insurance, to help auto insurance marketers and underwriters accurately assess auto claims risk.  Derived from IXI's proprietary database of over $24 trillion consumer assets, IXI's auto risk tool enables P&C firms to identify consumers likely to file high dollar auto claims.

The tool offers a viable alternative to the use of credit scores in evaluating policy risk.  “As consumer and regulatory pressure to discontinue the use of credit scores as part of the underwriting process continues to grow, P&C firms can benefit by considering alternative variables to help them more precisely predict auto claims risk and enhance marketing efforts,” states David Flam, Group Vice President of IXI’s Diversified Insurance Practice.  

The Risk Assessment for Auto Insurance Score ranks policyholders based on their likelihood to file auto claims, both in terms of frequency and dollar amount.  Auto marketers and risk/pricing executives can incorporate the scores into their models in order to:

• Identify new and existing customers that are likely to become costly policyholders
• Adjust premiums for new and existing policyholders based on forecasted cost to firm
• Develop treatment groups and tailor acquisition efforts, marketing offers, and retention strategies based on risk
• Improve portfolio management and assist with LTV calculations

Tool Identifies High Risk Policyholders, Without the Use of Credit Data

A recent analysis with a national auto insurer and several other compilers of claims information showed that IXI’s Risk Assessment tool was able to identify specific consumer segments considered to be high risk; credit data is not included in IXI’s Risk Assessment tool.  The analyses revealed that IXI’s tool showed:

• A significant correlation between consumers with specific financial behaviors and the likelihood to file high dollar claims.
• A significant lift in predicting claims loss amount for an evaluation of a sample population.

Proprietary Oscillator Optimization Process™ Enables Effective Differentiation of Auto Policyholders

IXI’s Risk Assessment for Auto Insurance tool utilizes IXI’s unique Oscillator Optimization Process to analyze the relationship among consumer financial behavior, spending capacity, and other variables.

By varying the weights of each variable across the spectrum of combinations, the Oscillator Optimization Process produces a non-linear relationship in order to assess consumers’ likelihood to become costly auto policyholders.  Those consumers who are determined to be ‘safe bets’ are optimized to the top of the risk score pendulum, while those that are most likely to result in significant cost to a firm’s bottom line get low scores.  The result is that IXI’s Risk Assessment for Auto Insurance tool can effectively differentiate consumers’ likelihood to file high dollar claims.

For more information, please contact us at 800-210-4323 or info@ixicorp.com.