The commercial insurance marketplace is incredibly diverse, and with a wide range of funding sources available, traditional financial data may not provide all the information that insurance carriers may need to rate accurately. To stay competitive, carriers may need to leverage a wide range of data sources to ensure that they capture the most predictive view of risk for the businesses they serve.
Many carriers already use a commercial credit score when underwriting commercial lines. However, commercial credit scores are designed to predict financial risk, not insurance risk.
Insurance carriers can develop a clearer view of commercial risks by leveraging the wide range of data sources available through the LexisNexis® Attract™ for Commercial Scoring Suite. Carriers can access multiple predictive loss models, including both FCRA and non-FCRA options, to more easily incorporate scores for businesses, business owners and commercial drivers.
Developed over five years using more than $19 billion in policy premiums, LexisNexis® Attract for Commercial’s suite of proprietary predictive scoring models uses policy and loss data to rank commercial risks by loss ratio and/or loss frequency. Carriers can use these models to help make segmented or automated, data-driven decisions that help them identify and acquire the types of risks that they are targeting — empowering them to improve overall profitability.
LexisNexis® Attract for Commercial can help carriers:
Attract the risks that carriers want to help improve retention rates With better coverage, carriers can identify good risks and rate them appropriately to help increase their conversion rate. Accurate rating also reduces the chance of highly valuable businesses shopping with or moving to a competitor when it’s time to renew.
Rate the risk more precisely Risk-based pricing helps carriers price more accurately and offer more competitive pricing. Carriers can also set more effective rate policies for those customers who are currently rated neutral.
Mitigate adverse selection risk Robust scoring provides a more complete picture of risk. And by increasing the information that carriers incorporate and the volume of risks that they score, they can also help minimize the possibility of underpricing a high risk or being subject to adverse selection.
Enhance underwriting efficiency Risk scores enable straight-through processing (STP) by helping to identify queries that don’t require human intervention. Increasing STP can help lower underwriting costs and allow underwriters to spend more time on the applications that require complex risk analysis.
Improve the customer experience Customers expect quick turnaround times. With more accurate pricing and increased STP, carriers can offer their agents and commercial customers a better experience, while increasing their agents’ potential to service a direct presence.
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More InformationLexisNexis® Attract for Commercial Scoring SuiteLexisNexis® Attract for Commercial: Business Owners Underwriting (FCRA)LexisNexis® Attract for Commercial: Business Owners Underwriting (Non-FCRA)LexisNexis® Attract for Commercial Auto Underwriting (Driver Model)LexisNexis® Attract for Commercial Underwriting