Underwriting, Pricing & Product Management

Reduced losses through sharper risk differentiation; lower operational expenses from fast, efficient automated processes; improved consistency across more productive channels; better targeted new products brought to market faster

FICO delivers:

Relevant products & services:

• Fast, accurate automated quoting, underwriting and new business processing across multiple channels
• Analytics for precise separation by risk to enable pricing tier expansion
• Separation of renewals for auto-processing from those requiring review
• Analytics (including systematic analysis of operational data) for shaping portfolios and identifying product development opportunities
• Reusable, modifiable business rules for easy configuration and faster introduction of fresh, relevant products
• Simulation tools enabling business users to test rule changes for new product and pricing strategies by running numerous “What if?” scenarios very rapidly
• Optimization for mathematically determining best price and other critical decisions
• Rapid modification, by underwriting managers, of policies and processes, and predictive models.

FICO® Insurance Risk Scores rank order personal auto and homeowner insurance applicants by future loss ratio relativities. They increase underwriting capacity, consistency and objectivity while eliminating the need for manual review on a large percentage of decisions. Two types of scores are available:
FICO credit-based insurance scores analyze credit report data to predict likelihood of insurance loss. They are available through US credit bureaus.
FICO property risk scores predict likelihood of insurance loss by analyzing numerous property inspection characteristics (including replacement cost) from the comprehensive database maintained by Millennium Information Services. They are available from Millennium.
FICO™ Predictive Analytics develops custom models that improve underwriting decisions. Sharper risk differentiation enables granular score cut-offs for more accurate pricing at the levels of customer segments, sub-segments and individual policyholders.
FICO™ Blaze Advisor® business rules management system incorporates scores and other analytic outputs into efficient automated processes for underwriting, product management and other core insurance processes. Business users can change rules and scoring thresholds in response to market conditions and new product requirements.
FICO Xpress Optimization Suite comprises the foremost mathematical modeling/programming language, complete development environment and suite of solvers for optimization problems of all kinds. FICO combines this technology with deep industry expertise to deliver an insurance pricing optimization framework that puts you on the fast track to more profitable pricing.  

FICO delivers:

Relevant products & services:

• Rules-driven First Notice of Loss procedures (automated coverage verification, data collection, fraud scoring, etc.)
• Prepayment scoring of claims for fraud/abuse as well as errors that slip by claims edit systems
• For healthcare payers, automated monthly scoring of providers for unusual billing or care patterns
• For worker’s compensation insurers, ongoing scoring of open claims and employer scoring for likelihood of underpayment (identification of candidates for premium audit)
• Detection of emerging schemes and processing policy vulnerabilities
• Intelligent claims review, case management and investigation tools
• Efficient claims-level reserving
• Rapid modification, by claims managers, of processing rules, scoring thresholds, review queue management, etc.

FICO™ Blaze Advisor® business rules management system incorporates scores into efficient automated processes. Use it to streamline claims intake and fraud referral, adjust scoring thresholds to optimal levels given review capacity, and improve consistency in procedures such as First Notice of Loss.

FICO™ Insurance Fraud Manager is a multi-line fraud detection solution. With its ability to incorporate custom models, it can be used for fraud detection in virtually any line of business. It is also available with prepackaged models, workflows and interfaces in the following versions:

• FICO™ Insurance Fraud Manager, Healthcare Edition enables insurers to meet prompt payment obligations while minimizing costly pay-and-chase and reducing losses from fraud, abuse and error.
• FICO™ Insurance Fraud Manager, Worker’s Compensation Edition alerts insurers the moment a case shows the first signs of potential fraud or abuse, enabling action to be taken before big payouts and accumulating losses.
• FICO™ Insurance Fraud Manager, Auto Edition enables insurers to safely pay most claims on the spot, without increasing fraud risk exposure.

FICO™ MIRA™ Claims Advisor for Reserving estimates reserves from individual claims. Increases accuracy while improving adjuster productivity.

FICO delivers:

Relevant products & services:

• Analytically precise segmentation and targeting
• Relevant offers and focused campaigns based on predictions of individual prospect/customer response behavior
• Identification of best prospects for cross-selling and up-selling within renewal populations
• Tailored interactions with individual prospects/customers across any channel
• Fast-cycle learning for campaign refinement
• Rapid modification, by marketing managers, of campaign rules

FICO™ Precision Marketing Manager incorporates custom predictive models and optimization engines to pinpoint, for each of your prospects or customers, exactly which configuration of offers, messages, incentives, channels and timing is most likely to elicit a positive response and result in the most profit.
FICO™ Customer Data Integration gives you an integrated view of your customers—including deeper insights at both the individual and household levels—by  instantly matching and joining data from many different enterprise touchpoints.
FICO™ Marketing Services provides expertise in strategic marketing planning, program design, program management, and measurement and analysis.

FICO delivers:

Relevant products & services:

• Consistent enforcement of regulatory mandates across core insurance processes and multiple channels
• Flexible adjustments to varied state and market requirements
• Automated compliance documentation and audit tracking
• Decision transparency (models and rules clearly show what decision was made and why)
• Precise (claim-level) risk predictions for more accurate reserving
• Rapid modification, by compliance managers, of regulatory rules
  

FICO™ Blaze Advisor® business rules management system can automatically validate new business and renewal processes against applicable regulations, adjusting for differences in state requirements. It can also generate compliant forms, user  interfaces and agent prompts, and capture an audit trail documenting compliance.
MIRA™ Claims Advisor for Reserving estimates reserves from individual claims rather than from policyholder groups. Use it to increase precision in risk-based pricing and to refine or validate reserve estimates.