Reducing quotation turn time from 15 minutes to 1 minute and checking “evidence of insurability” automatically to enhance customer experience for a p&c carrier

Customer

Multi-million-dollar property and casualty insurance company providing insurance products in personal and commercial lines of business in North America

Business Situation

  • Home owner business not profitable in some states from writing unprofitable risks. Looking to reduce the loss ratio and to enhance profitability of Homeowners line of business in North America
  • The customer journey for buying home insurance was frustrating due to the amount of time taken to capture all the property characteristics and the dependency on underwriter approval. Only after spending 10-15 minutes, the policy holder could either review the quote or find out that the carrier has declined the policy
  • Wanted to simplify the customer experience around shopping home insurance and reduce risk due to bad due diligence and proper understanding of “evidence of insurability”
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Solutioning

  • New customer journey designed with streamlined process; Entering addresses standardized by leveraging APIs
  • Enhancement of predictive model to score each property address based on public data, credit score, property characteristics, property exposure, historical losses, property addresses & characteristics and historical policy and claims data as inputs to determine the predictive losses, likelihood of claim, and therefore potential profitability
  • Analysis and identification of 3rd party data sets and data broker partnerships. Started with data for 3.5 million homeowners addresses along with its property characteristics
  • Use expense and profit margin on the predictive loss and reinsurance cost for each property address to determine score. If the agent thought the Blind rate validation was incorrect and the policy could be profitable, then the agent was asked to provide more data, so that a new decision could be made about insuring the property
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Value Delivered

  • Delivered a 1-click pre-underwritten quote and simplified home insurance sales process and shopping experience for customers:
  • Time for a quote reduced from average 15 minutes to 1minute leading to 300% increase in quotes
  • 6-fold increase in volume of new business
  • After 1 year of implementation, the loss ratio improved by 30 percent.