Engineering a loss cost for competitivenessBy Peter de Freitas | March 12, 2015
If you’re an underwriter, you probably spend more time dealing with loss costs than you’d like. It can be frustrating because it’s a driver of your underwriting and pricing, but because it’s a filed instrument, you have limited options to improve it.
Verisk spends a lot of time focusing on loss costs too. For decades ISO has been the go-to source for filed loss costs — but providing that service to you isn’t enough. You need options, insight, flexibility, and a competitive advantage when it comes to loss costs. And that’s exactly what the next generation of ProMetrix® targets.
In the past, you could go online, enter a property address, and obtain a loss cost. With a little more work, you could use another static source to determine what an insured could do to mitigate a risk. Then you could go back and see what the effect on the loss cost was and maybe offer a more competitive price.
That was the old way. Here’s the new: We’ve launched a new ProMetrix website that puts you in control with our Risk Engineering Utility. Just enter a commercial property address, and remediable, field-verified hazards pop up automatically. With just a click, you can select one or a combination of hazards and watch the loss cost change instantly. You’ll see it happen in a dynamic graphic with scenario you selected identified numerically. You can adjust the loss cost and identify exactly how to do it. You can actively engage your insured and help lower the loss cost — offering the most competitive price.
I think our Risk Engineering Utility is one of the most exciting tools for underwriting, loss control, and pricing. For the first time in the commercial property insurance marketplace, underwriters can actually model loss costs by adjusting the effect of remediation actions. It provides you with a competitive edge and allows you to quote quickly and accurately. You can easily incorporate action guidelines into your underwriting process because the utility identifies specific risk thresholds and options for remediation.
Finally, you have the option of using our National Processing Center, with more than 120 insurance expert representatives ready to perform all follow-up and confirmation calls to your insureds.
For tutorials on the utility and other ProMetrix features, go to ProMetrix Next Generation.
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