Accurately predict risk and set pricing

Insurers are looking to build a more profitable book of business. The ability to more accurately predict underwriting risk and set underwriting and pricing policies is critical to achieving this goal. FICO brings you a comprehensive solution that adds a new level of precision to the entire process. This precision helps you not only reduce losses but also enables you to bring the right products to market faster, with higher acceptance rates from targeted customers. While improving precision, you can also make use of automation to cut time and cost from your processes.

Insurers have realized significant improvements with FICO’s proven capabilities:

• Lowered combined ratio by 8 points
• Increased pricing tier from 6 to 24
• Increased time savings for new product introductions by shaving 9,000 hours annually
• Increased automated application processing and binding to 99%
• Reduced time to change underwriting and renewal rules from 6 months to just 1 month

FICO offers insurers a range of important capabilities and attractive benefits. With FICO’s underwriting, pricing and product management solution, you can:

• Reduce losses and operational expenses by employing FICO® Insurance Scores (credit or property inspection based) to rank order applicants by future loss ratio relativities.
• Expand pricing tiers using custom models, with or without credit as one of the multiple variables, to increase risk differentiation and set more granular score cutoffs.

• Identify the right business mix to meet profitability targets employing decision modeling, optimization to find the most profitable pricing strategies, and simulation to determine where to target growth initiatives.
• Increase underwriting consistency and capacity using predictive analytics to determine which applications and renewals can be automatically processed, and rank ordering the rest by degree of risk into queues of skill-matched underwriters.
• Improve competitive agility by quickly adjusting underwriting guidelines, pricing tiers, and product configurations to changing market conditions, simulating their impact and deploying them across channels.
• Minimize premium leakage with an analytics-driven point-of-sale solution that determines if an application is highly risky or just has a few addressable problems.