Risk-Based Modeling

PerilVision – Transforming Property Risk Selection and Pricing

In automobile insurance, merging claims and underwriting data has revolutionized the industry. This merger enables carriers to underwrite and price accounts with pinpoint accuracy and target markets in ways that were never before possible.

Today, the property insurance industry is poised for a similar revolution. Carriers that effectively leverage building characteristic and claim data to develop and support fine-grained segmentation in risk selection and pricing strategies will lead the charge. MSB can help you do just that by delivering risk-specific insights you can use to gain a significant competitive advantage in the homeowners marketplace.

From Information to Insight

Understanding how home characteristics correlate with losses caused by different perils can enhance your pricing, selection and account management without requiring you to significantly alter your underwriting practices. MSB’s PerilVision provides you with data-driven, risk-specific insight for each property you enter into MSB’s RCT (Residential Component Technology) software.

PerilVision delivers both a peril-specific score and a composite score for each homeowners risk. We focus PerilVision scores on profit and loss factors and base these scores on proven algorithms that correlate objective, observable property characteristics to data captured from actual claim files. They also incorporate geographically specific information, enabling you to include local factors that affect home construction in your pricing and underwriting.

As a result, PerilVision enables you to fine-tune your individual risk selection to a remarkably granular level and increase your competitiveness by establishing precise pricing for each risk you write. You can also create new marketing strategies and craft policy language to target local and niche market opportunities. Additionally, PerilVision enables you to identify and isolate problem risks before you write them.

MSB’s Data Advantage

Developing risk-based segmentation strategies in property insurance requires high quality, archived and accessible property characteristic and claims data. Equally important, effective segmentation strategies demand the ability to incorporate this data and the resulting risk-based analyses into underwriting workflows with ease.

By incorporating PerilVision scores into automated decisioning systems, MSB allows risk-specific pricing to become a seamless part risk selection in back-office underwriting processes or in point-of-sale applications. MSB’s PerilVision leverages our core competencies in providing trusted, proven and actionable information to the insurance industry, including:

Depth of Data. Without a statistically significant sample of highly granular, correlated claims and underwriting data, it is impossible to develop rating tiers beyond the most basic price segmentation models. By synchronizing our underwriting building cost data and claims experience data, MSB has built a vast reservoir of information. This information includes our massive Insurance Data Warehouse (IDW) and Insurance Valuation Warehouse (IVW). These warehouses grow even larger as MSB continues to add data from RCT-entered home policies and IntegriClaim™–entered losses across the country.

Experience: Not only does MSB have an 80-year track record of building cost expertise, but we also have years of experience in utilizing data analytics and developing analytic teams that support both our claims and underwriting services.

New Resources: MSB has partnered with EMB America, LLC, an actuarial firm that specializes in multivariate predictive modeling, to enhance the predictive modeling techniques that support our PerilVision service. We have the ability to incorporate additional features, such as geocoding with hazard lookup or InterChange™ property characteristics, to customize PerilVision to your specifications.

Transform Your Business

Using MSB’s PerilVision enables you to optimize your risk selection and pricing. PerilVision can support segmented pricing strategies that you develop to enhance your competitive market position. It will increase the understanding of the risks you insure. Additionally, it will enable you to gain important, risk- and peril-specific insight into properties before you insure them.

Contact Us

To learn how MSB’s PerilVision can help you improve profitability and uncover new opportunity, call us at 800.809.0016 or email
underwritinginfo@msbinfo.com.