FICO® Insurance Scores

FICO® Insurance Scores

Gain an added perspective on risk with credit data and FICO modeling.

Product Details

FICO® Insurance Scores (formerly known as Credit Based Insurance Scores) give property and casualty underwriters an instant assessment of prospect, applicant or policyholder risk based on credit reporting agency data. These industry-leading scores have helped more than 300 insurers in North America make better decisions based on future claims/loss expectancy. FICO also offers scores that assess property risk based on property inspection and application information.

Increase profitability
By using FICO® Insurance Scores as part of your risk assessment, you can make more profitable underwriting and pricing decisions, more successful prospect targeting, more effective allocation of underwriting resources, and an enhanced ability to maximize cross-sell and up-sell opportunities.

Improve customer service
With an objective and accurate rank-ordering of the likely future performance of insurance applicants and policyholders, insurers have the power to address various customer segments' needs more appropriately, while reducing the time needed for lengthy underwriting reviews.

Build a richer picture of risk
FICO® Insurance Scores evaluate risk based on consumer credit repository data, giving you a picture of risk based on another source of information: the consumer's credit history. Studies have continually proven that these scores effectively rank-order prospects, applicants and policyholder based on projected insurance claim/loss expectations.

Beyond application data, MVRs and other data typically used in insurance decisions, FICO® Insurance Scores’ analysis of data in a consumer's credit report gives insurers insight into a consumer's financial management behavior, which studies have proven to correlate to claims risk. In modeling, FICO matches credit data against regional and national insurance performance databases. Multiple scoring models provide more precise risk assessment for different sub-populations. Each account is scored by the right model based on the information in the consumer's credit history. Insurers use FICO® Insurance Scores to make more successful decisions in customer acquisition, underwriting, pricing and account/book management.

FICO<sup>®</sup> Insurance Scores

‌  Proven insurance risk prediction across customer segments including home, auto, dwelling fire, other personal lines and small commercial insurance products.

‌  Covers lifecycle phases including prescreen, quote, new application underwriting and pricing, account management, etc.

‌  FICO® Insurance Score indicates the likelihood a given consumer will generate more or less insurance loss than the collected policy premiums within the next policy term.

Resources

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FICO® Insurance Scores

FICO® Insurance Scores are credit-based insurance scores available at major US and Canadian credit reporting agencies. You’ll find the scores by the following names: CPLS™ score at Equifax, Canada InScore® at Equifax, USA FICO® I...
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FICO® Insurance Analytic Health Check

FICO® Insurance Analytic Health Check is a high-impact, short-duration service that analyzes your current data and analytics environment and provides a clear roadmap for making smarter decisions that will drive profitable growth for your b...
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Answers to Your Questions About FICO® Credit-Based Insurance Scores

An insurance score is a snapshot of your insurance risk picture at a particular point in time based on credit report information. Insurance scores provide under-writers with an objective, accurate and consistent tool that, used with other ...
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FICO Successfully Defends Insurance Industry Use of Credit

Summary: In recent months FICO has aided the insurance industry in successful defenses of credit-based insurance scores against regulatory and legislative restrictions in more than two dozen states across the nation. In almost every ins...