Catalog of Auto Underwriting Products

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1 Catalog of Auto Underwriting Products

2 Introduction Verisk Insurance Solutions offers a full range of products and services to help you make superior automobile underwriting decisions. This catalog provides a comprehensive overview of the tools we ve designed to meet your needs a set of products and services not available from any other single source. It s important to note that each product or service can stand on its own, and you may license and use a particular tool independently of all others. However, you may also combine and package them in a variety of ways. And you can customize their content and delivery to meet your business requirements. Our sales professionals, technical experts, and consultants stand ready to help you select the combination of services best suited to your needs. For more information, please visit Or call Verisk Customer Support at

3 Underwriting Products and Services A-PLUS TM Auto (Auto Loss History Reports) The A-PLUS Auto loss history database is a participatory database with virtually all personal auto insurers contributing their auto claims data. Each loss history report provides up to seven years of rich loss history information on all claim types, including bodily injury, comprehensive, personal injury protection, collision, property damage liability, towing, and glass. The reports offer these additional flags and indicators: Mexico theft indicator Hurricane Katrina data indicator (from the National Insurance Crime Bureau) Louisiana Katrina data indicator Notice of Recall information Salvage indicator Mississippi branded-title information Prior-repair estimates Office of Foreign Assets Control (OFAC) service Event data recorder information Mail-drop alerts Inquiry enhancement Standard claim code and custom claim code Social Security number (SSN) verification Cash for Clunkers monitoring A-PLUS Verified Auto Symbol and VIN decode Coverage Verifier SM Auto (Policy and Coverage History) Coverage Verifier SM Auto underwriting reports supply information on current and prior policies to help insurers evaluate applications from prospective insureds. The system searches for current and previous coverages and limits, and identifies prospective customers with lapses or policy suspensions. Insurers can use reports to confirm coverage statements on applications for insurance and support sophisticated market pricing and segmentation. Coverage Verifier Auto uses Match Plus technology to broaden its searches by returning new and expanded information. And for each search, the system accesses data on all potential insureds on the policy application, not just the named insured. Coverage Verifier Auto enhances risk selection and pricing decisions with a variety of information, including: policy in-force status cancellations, lapses, and reinstatements coverage periods coverages, limits, and deductibles driver and vehicle information, such as driver s license numbers and vehicle identification numbers (VINs) insurance discounts Verisk Insurance Solutions Catalog of Auto Underwriting Products 3

4 RISK:check Point of Sale (Antifraud Model for Underwriting) RISK:check Point of Sale is an innovative underwriting model for personal automobile insurers. Carriers can use RISK:check Point of Sale to: evaluate individual applications for insurance identify risks with a high likelihood of future claims fraud find rating errors that could result in lost premium The real-time service uses a sophisticated scoring model that accurately predicts loss ratio and other performance metrics. Carriers receive numerical scores indicating the degree of risk, as well as reason codes and text messages that explain discrepancies. With RISK:check Point of Sale, insurers can find potential fraud and rate evasion up front, before writing the policy. Homeowner VerificationTM (Verification of Home Ownership) Homeowner VerificationTM uses two search methods public records or credit history to verify an applicant s home ownership. Insurers can use the information to support related discounts and help target opportunities for cross-selling a homeowners policy at the point of sale or renewal.

5 Driver Violation Information Insurers have used driver violation information for many years to select and rate auto risks. But many states offer different levels of information with confusing fee structures, ranging from complete driver abstracts (MVRs) at full expense to partial information (Index of Activity) at a lesser fee. Verisk Underwriting offers a full range of driver violation information services to help carriers navigate all those offerings and get the information they need without having to pay for reports they don t want. MVR (Motor Vehicle Report) MVRs provide complete driver abstracts from state departments of motor vehicles. Insurers have access to: easy-to-use standardized reports that help assess risk interactive MVRs for reports returned immediately an archive search database that saves money if a similar request is already in the database standard violation codes and customized violation responses Violation Predictor While motor vehicle reports can help underwriters predict the likelihood of future losses for particular drivers, many states continue to raise their fees for those reports, lessening their perceived value. To address that challenge, Verisk offers Violation Predictor to help identify drivers most likely to have violations. With Violation Predictor, insurers can maximize resources, save time and expense, and streamline the quote process. DriverAdvisor (Driver Violation Monitoring) With DriverAdvisor, where states make available an Index of Activity (IOA), insurers can check for driver violation activity without incurring the expense of pulling an MVR on every driver. Verisk offers our DriverAdvisor service in two ways: on demand for insurers that submit files periodically or at designated times, such as prerenewal continually for insurers that wish to monitor their book of business continually for any driver violation activity and receive alerts as they occur And if an insurer contributes policy data to the Coverage Verifier database, there s no need to send additional files to Verisk to take advantage of DriverAdvisor. New-Driver Discovery (Monitoring for Newly Licensed Drivers) In addition to monitoring for driver violation activity, DriverAdvisor offers a cost-effective new-driver discovery service that continually monitors policyholder households for the addition of newly licensed drivers. When the system discovers a newly licensed driver, it generates an alert with details about the new driver to help evaluate whether to add that driver to an existing policy. 5

6 Rating Integrity Analytics and Services (Rating Data Verification and Rate Pursuit) Rating error has a significant effect on an insurance carrier s financial performance. In 2011 alone, rating error cost the industry $16.3 billion in premiums. Premium rating error represented 9.86 percent of a total $165.1 billion in personal auto premium written. Without action, insurers will continue to lose billions in the future all because of premium leakage. But carriers can stem the leakage by taking appropriate action. RISK:check Renewal RISK:check Renewal is a sophisticated system that identifies rating errors in private passenger auto policies and calculates the likely lost premium. The service compares the rating and underwriting information from individual policies against hundreds of millions of records from public and proprietary databases. RISK:check Renewal conducts multiple audit checks to identify potential rating errors. Audit checks can include: commute annual mileage vehicle garaging territory unlisted drivers accidents and violations identity theft farm use vehicle-driver assignment nonowned vehicles vehicle Symbol business use marital status VIN identification Precision Reunderwriting TM Precision Reunderwriting is a service that contacts and interviews policyholders to correct rating errors. Precision Reunderwriting is the most efficient way to get information to limit premium loss from old or incorrect rating data, rate evasion, and compromised information. Insurers can customize the contact method to fit their culture and policies. Using proprietary pattern analysis and statistical algorithms to flag questionable policyholder information, RISK:check Renewal uncovers such problems as: vehicles garaged at mail-drop addresses households with unreported youthful operators incorrect vehicle-driver assignments misreported commute distances commercial vehicles insured for pleasure use After identifying questionable patterns, RISK:check Renewal estimates the probability of an actual error in an individual policy. The system also calculates the likely premium recovery if the insurer corrects the error. That information can help determine the most effective strategy for contacting a customer. And the model dramatically reduces costs by helping the carrier prioritize work based on likely recoveries. RISK:guard Insurers can use RISK:guard in the second and later years of a multiyear rating integrity program for private passenger auto insurance. After using RISK:check Renewal and Precision Reunderwriting, carriers can use RISK:guard to protect their investment in rating integrity. RISK:guard compares the first-year information with new information in three key areas: residential address vehicle mix driver mix If there are material changes, RISK:guard flags the policy for complete database matching and modeling through RISK:check Renewal. RISK:guard helps insurers focus their rating integrity efforts on policies that have the greatest potential for yielding additional premium. With RISK:guard, insurers can reduce costs in the second and later years by as much as 60 percent while still preserving gains from prior rating integrity efforts. 6 Verisk Insurance Solutions Catalog of Auto Underwriting Products

7 MileageConfirm MileageConfirm helps identify potentially false or fraudulent information from applicants at the point of sale. MileageConfirm works in real time uncovering costly rating errors before they can hurt an insurer s bottom line. The tool helps build rating integrity into the front end of the private passenger auto insuance underwriting process. MileageConfirm works with existing sales processes and systems to flag questionable information from an applicant in real time on the phone, over the Internet, or in an agent s office. During the new-business process, MileageConfirm reviews select rating elements, such as: annual mileage commute distance business use The system also checks information from the applicant against multiple databases and predictive models. Within seconds, the salesperson, agent, or underwriter gets an analysis identifying potentially false, out-of-date, or illogical information. Verisk s Telematics Suite (Telematics and Data for Usage-Based Insurance) Verisk s Telematics Suite is a comprehensive set of analytical tools for telematics and usage-based insurance (UBI) programs. The suite includes two complementary, ready-to-use scores based on driving location and driving behavior, a filed and approved rule for awarding driver discounts, and a state-of-the-art platform that analyzes thousands of variables.

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9 Reverse Phone Append Reverse phone append (RPA) provides the name and address of an applicant by entering his or her telephone number during the quote process. RPA streamlines the point-of-sale process and validates a critical piece of policyholder information, allowing quote and bind of new business to occur more accurately and efficiently. LOCATION (Territory Services) Territory Services assign the correct personal auto territory code for every risk address in the United States and the District of Columbia. Independent bureau and state-issued territories are also available, and insurers can further customize the Territory Services database to include a company s unique definitions in each state. Undisclosed-Driver Information To estimate underwriting risks accurately and calculate suitable premiums, insurers need complete information on all potential drivers within a policyholder s household. Undisclosed-driver reports can help carriers: access several up-to-date licensing databases get pertinent information about other drivers in the household identify the exact extent of household exposure from undisclosed drivers Vehicle-Registration Reports Vehicle-Registration Reports provide vital information about vehicle registration and ownership. Each report validates an applicant s insurable interest by confirming that the insured or an associated lessor has registered the vehicle. Vehicle-Registration Reports provide: the vehicle s year, make, model, body style, and VIN the name and complete address of the individual who registered the vehicle the name of a cosigner or second owner, if applicable the expiration date of the registration the plate type, such as regular, vanity, dealer, or commercial the name of the leasing company, if applicable information on branded titles, indicating an unusual condition in the vehicle s history (junked, salvaged, flooded, rebuilt, etc.) VINMASTER (Vehicle Series Rating Symbols) VINMASTER helps identify an automobile s current ISO Vehicle Series Rating Symbol without knowing the vehicle identification number (VIN). The only information an agent or underwriter needs to provide is the vehicle s make, model, and a few key features. VINMASTER is a data file that contains information on foreign and domestic private passenger autos beginning with model year Supplemental files for earlier model years are available for additional one-time fees. Along with the Vehicle Series Rating Symbols, insurers receive information on the vehicle s restraint system type and the availability of antilock brakes and daytime running lamps. With VINMASTER and an insurer s own software, insurers can also identify a vehicle s Personal Auto Rating Symbols relative to physical damage and liability and PIP/medical payments. Online VIN decoding with ISO Symbols If an insurer subscribes to ISO Symbol Services, we offer online access to ISO Vehicle Series Rating Symbols and VINMASTER. QuickFill (Point-of-Sale Prefill Technology) QuickFill is a fast, efficient way for policyholders, agents, and insurers to get information to complete an insurance premium quote at the point of sale. The service prefills key elements into the application, making the process quick and easy. QuickFill gives agents, automated systems, and underwriters critical information at the beginning of the policy life cycle. And QuickFill offers workflow logic that populates data based on a company s unique set of underwriting rules. QuickFill offers the most comprehensive set of information for auto applicants, including: evaluation metrics and scores to flag potential fraud and to rate existing coverage verification existing policy limits by coverage claims history vehicles and drivers (including undisclosed drivers) vehicle use annual mileage Symbols state DMV vehicle registration motor vehicle reports (MVRs) LOCATION territory credit reporting

10 Credit Reports and Scores Credit reports and scores provide easy access to critical consumer credit information through strategic alliances with leading credit information providers. Credit scoring delivers much more than just a basic knowledge of an individual s credit history; it can also help predict the expected loss ratio or claim frequency associated with an applicant. Insurers can receive: a credit report a credit report with a numeric score and reason codes a credit score report with reason codes 10 Verisk Insurance Solutions Catalog of Auto Underwriting Products

11 Compliance and Workflow Services CV-ALIR (Electronic Automobile Liability Insurance Reporting) The system uses NoticeLink, an electronic service that delivers data quickly while significantly reducing returned mail. CV-ALIR is the simplest way to satisfy an insurer s statutory obligations to report automobile coverage to state departments of motor vehicles (DMVs). CV-Exchange helps insurers: save time reduce processing of returned mail increase data accuracy reduce paper processing reduce exposure related to notification failure cut mailing costs, with no setup fees or capital expense Many states require electronic automobile liability insurance reporting (ALIR), and many more will require it soon. Since requirements differ from state to state, this process is often difficult, error-prone, time-consuming, and costly. Insurers need a reliable reporting, tracking, and error correction facility. Instead of developing and managing an electronic reporting program for every state, all you need to do is establish a single data feed to Coverage Verifier. Using state-of-the-art technology and our extensive experience in meeting the challenges of state reporting, Verisk processes your company data according to each state s individual, unique, and continually changing requirements. CV-Exchange (Loss Payee and Additional-Interest Notifications) The CV-Exchange loss payee and mortgagee notification and escrow billing service streamlines the notification process for loss payees and additional insureds, especially related to policy changes affecting their collateral and insurable interest.

12 545 Washington Boulevard Jersey City, NJ Verisk.com/insurance 2015 Insurance Services Office, Inc. Verisk, Verisk Insurance Solutions, the Verisk Insurance Solutions logo, and Homeowner Verification are trademarks and LOCATION, QuickFill, and VINMASTER are registered trademarks of Insurance Services Office, Inc. A-PLUS Verified, CV-ALIR, and CV-Exchange are registered trademarks; A-PLUS is a trademark; and Coverage Verifier is a service mark of ISO Services, Inc. NoticeLink is a registered trademark of ISO CV Services, LLC. DriverAdvisor is a registered trademark of ISO Claims Services, Inc. AIR Worldwide is a registered trademark of AIR Worldwide Corporation. RISK:check and RISK:guard are registered trademarks and MileageConfirm and Precision Reunderwriting are trademarks of Quality Planning Corporation. All other product or corporate names are trademarks or registered trademarks of their respective companies. VISU008 (7/15) z14164