Visualize: Insights that power innovation

Visualize: Insights that power innovation

Validating coverage for undisclosed drivers stems premium leakage

By Dorothy Kelly  |  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:

undisclosed driver insurance case study infographic

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 13.6 months. As a result, Verisk estimates average lost premium to be more than $1,000 per policy.*

*Analysis may include some permitted drivers, depending on information provided by states.


Dorothy Kelly is director of product management for ISO Personal Lines at Verisk. She can be reached at dkelly@verisk.com.