Digging Deeper: Danielle paid her cable bill late almost every month.
Now you know: Her credit-based insurance score may be appealing, but her payment history for a discretionary service like cable TV may reveal more about her risk level beyond what traditional credit report data indicates. Danielle's policy premium could be more accurately priced based on a more complete picture of her payment behavior.
Traditional, high-level credit data: Paid off her auto loan six months early.
Occupation: Administrative assistant
Danielle, Female, Age 35
Digging Deeper
Now you know
Now you know: The initial auto insurance policy premium quoted for Meredith, using just her credit data, was based on your rating and underwriting guidelines.
Digging Deeper: Meredith pays utilities, cable bill and cell phone bill on time.
Traditional, high-level credit data: Three credit cards, all current. Pays mortgage and auto loan on time.
Occupation: Attorney
Meredith, Female, Age 50
Now you know
Digging Deeper
Now you know: Henry's lackadaisical attitude toward utility payments may ultimately make him a higher risk for you as an insurer.
Digging Deeper: Henry neglected to stay current on his electric bill and had his electricity shut off twice in the past two years.
Digging Deeper
Now you know
Traditional, high-level credit data: Mortgage, car loan and three credit cards are all paid on time.
Occupation: Architect
Henry, Male, Age 62
Digging Deeper: Michael has not made a late payment on his mobile bill for the past three years.
Now you know: As a potential policyholder, Michael may represent a good risk through his demonstrated responsibility of paying his bills on time and working to get his finances back in order.
Digging Deeper
Now you know
Traditional, high-level credit data: Brief pattern of late mortgage and credit card payments five years ago.
Occupation: Small-business owner
Michael, Male, Age 42
Now you know: Debbie's money management is an indicator that she's on solid footing — and may likely be less of a risk.
Digging Deeper: Debbie pays her gas and electricity bills on time.
Digging Deeper
Now you know
Traditional, high-level credit data: No credit history — does not have credit cards and paid for her car in cash.
Occupation: Food service manager
Debbie, Female, Age 24
The deeper the insights, the better you may be able to segment and quote potential policyholders — which, in turn, may lead to more satisfied customers and higher retention rates for existing policyholders.
And sometimes, you might be losing out on potential policyholders who are lower risk.
However, risk assessment is often more complex. On the surface, potential policyholders may appear to be low risk. But quoting based on traditional credit data alone may eat into the bottom line.
Usually, this is what you'd expect to find.
http://www.equifax.com/business/insight-score-insurance
Or call us at:
800-685-5000
To learn more about how we can help you gain deeper insights to enable you to more accurately segment and quote, visit:
A competitive edge with data not available anywhere else
A new predictive score that helps your company more accurately segment and price risk
The ability to
better quote millions
of consumers — regardless of whether they have credit histories
Alternative data that helps provide a more accurate indicator of the likelihood that a policyholder will
file claims
But with more relevant, complementary information from EQUIFAX INSIGHT SCORE FOR INSURANCE, you gain:
Quoting policies using credit-based insurance scores alone is a good start, but you may segment and be required by state regulations to quote at the average premium, which may be too high or too low.
The Solution
Deeper Insight into Risk with INSIGHT SCORE FOR INSURANCE
TM
Digging beyond credit-based insurance
risk scores to predict loss. And for that, you need a new data source that complements traditional credit report data.
A traditional credit-based
insurance score alone may not be
enough to predict your potential risk.
The Challenge
Fact
POLICYHOLDERS CAN COST YOU
WHAT YOU DON'T KNOW ABOUT
