RateRight Policy Risk Identification

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RateRight Policy Risk Identification

Valen’s RateRight® predictive analytics solution, created in partnership with Overland Solutions Inc., provides the identity of policies at high risk of misclassification, essential in pricing policies to risk.

Insurance is all about understanding risk and incorporating that risk into strategic business decisions

  • Do you know if reported exposures accurately reflect risk?
  • Does reported exposure fall within your company’s risk appetite?
  • Does policy pricing properly reflect associated risk?

These are just a few of the questions that often times go unanswered as insurers write new and renewed business. Valen Technologies in partnership with Overland Solutions have created RateRight a product designed to address these very issues. Insurers incorporating RateRight into their strategic decision process will gain clarity into these and other questions which are paramount in making good underwriting decisions.   

RateRight  

The RateRight  predictive model predicts policies at high risk of misrepresenting the policies true exposure which can be a factor of real payroll, classifications used on the policy and/or, the payroll amounts reflected within the classifications. RateRight used strategically within the insurer’s new business process and/or the renewal process enables the insurer to deal with exposure issues up front.  

As part of the overall RateRight solution, Valen and Overland Solutions are able to compliment the predictive analytics score with observational services i.e., UEV (Underwriter Exposure Verification), pre-audit, or loss control surveys designed to identify exposures not reflected on the policy. The additional information gathered by using these observation services drive underwriting actions necessary to correctly reflect the exposures in the policy. 

Product benefits include: 

Identify policies with misclassified exposures: RateRight helps identify the correct exposure which in turn allows for correct pricing and the option to exclude policies outside your risk threshold.

Identify premium fraud candidates: SIU investigators can use RateRight to help prevent situations of intentional or unintentional exposure misrepresentation. 

Minimizes downstream audit disputes: Getting the premium correct at policy issuance reduces downstream audit collections and policy disputes. 

Contributes to the generation investment capital: Collection of premium up front provide for the maximization of investment capital.

RateRight enables insurers to pro-actively reflect the correct risk in policy decisions.