As more and more 3rd-party data has become available, we see underwriting and pricing models change in an attempt to stay profitable. It appears to me that fewer and fewer carriers are trying to write “Good” business or putting any effort into cleaning up their “Bad” business.
When I speak with agents today about underwriting inspections in the personal lines market, no one knows what I’m talking about. When I was an agent and broker, we did our own inspections. The industry suggests that carrier analytics are better at upfront underwriting than most agents’ abilities and that’s where using a trained third-party vendor comes in. The best way to save money on a claim is to minimize the exposure. Since we can’t truly predict the loss probability (“Risk”), then doesn’t it make sense to write better business?
Primeco Claims Group performs Underwriting Inspections for all types of structures at a nominal cost. We have different pricing models that help insurers control cost, but more importantly write better business.
Insurance Journal Article on Rising Combined Ratios in 2017.