Case study: Validating coverage for undisclosed drivers stems premium leakage

By John Cantwell September 11, 2015

Every insurance company faces the challenge of drivers — particularly youthful operators — who are not included on insurance policies. Economic conditions and changing family dynamics have made the problem even more pronounced.

In this featured case study, a top ten insurer suspected that undisclosed youthful drivers were a primary cause of premium leakage. Realizing that it didn’t have the internal resources or infrastructure to effectively pursue these missing drivers, the company turned to Verisk. Verisk implemented a program of targeted letter campaigns and telephone calls to validate operators and coverage. We delivered the following results each month:

Not all insurance companies have successful driver discovery and validation programs in place, however. In fact, industry wide, the average time for a new driver under the age of 20 to be added to a policy is about 11 months. As a result, Verisk estimates average lost premium to be more than $1,000 per policy.

To discover the gaps in your coverage, request a complimentary undisclosed-driver analysis.

John Cantwell

John Cantwell, vice president, Auto Product Management, Verisk Insurance Solutions, is responsible for product management and branding strategy and leading the development and launch of innovative new products. Before joining Verisk, he was vice president of underwriting and product development at AIG Direct/21st Century Insurance.