Linda K. Brobeck
Laura A. Maxwell
Michael K. Chen
Radost Roumenova Wenman
Robert J. Walling III
Roosevelt C. Mosley Jr.
Gary C. Wang
Thomas R. Kolde
The best thing about working with Pinnacle is their flexibility and their willingness to provide additional explanations or data quickly without having to redefine the contract.
uses predictive analytics to help you better understand how key factors such as
reporting delays, vendors, independent adjusters, attorney involvement, injury
type and claimant characteristics impact your claims process.
Pinnacle helps insurers identify rating plan elements that can be more appropriately priced or added for additional risk segmentation.
Pinnacle can help you optimizing your use of credit-related characteristics to help you develop and maintain a competitive advantage.
uses lifetime customer value analysis to develop a long-term view of customer
value and determine how you can best use this information to make more
profitable long-term decisions.
Pinnacle’s predictive analytics team performs marketing analyses that help you more effectively target profitable new business.
Predictive analytics is a process of analyzing data at its most granular level to help unlock descriptive information to allow you to better segment, price, market and manage the products you write. Once considered just an innovative technique for the insurance industry, predictive analytics is now necessary for the success of personal and commercial insurers of all sizes.
Whether you need to determine how predictive analytics can help your organization or have been using predictive analytic techniques for years, we can develop specific predictive analytic applications or act as advisors to your predictive analytics practice. As recognized leaders in predictive analytics, pricing and underwriting, we have handled over 100 projects during the past ten years for insurers of all sizes, from four of the top 10 property and casualty insurance companies to small insurers. As a result, our nationally-recognized predictive analytics experts can help address your most critical pricing, underwriting, claims and marketing needs.
As part of Pinnacle’s ongoing commitment to knowledge transfer, we offer training so your team can learn how to apply basic and state-of-the-art predictive analytic techniques and develop basic and advanced applications. Our modeling tools are flexible and quick enough to perform applications in real time at your office, and our training walks you through the process to ensure your complete understanding.
Pinnacle provides you with substantial benefits from our predictive analytics solutions, which include:
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Pinnacle was approached by a national insurer that wanted to develop a more sophisticated homeowners rating program. Their current homeowners plan was a traditional rating approach and was only based on a few factors, and the company felt they were not taking full advantage of the potential in the homeowners market. Pinnacle, through the use of predictive modeling, assisted the carrier in designing a new rating and tiering structure, which included the introduction of by-peril rating and new territory definitions. This new structure allowed the company to be more precise in rating homeowners, resulting in more adequate and competitive rates for a broader spectrum of risks.
Territory / Summit Analysis
The insurer had not reviewed or adjusted their territorial boundaries in several years; and their current territories were not based upon an analysis of their underlying loss experience.
Pinnacle began with an evaluation of available insurer and external industry data at the ZIP code level as well as their current and future policy processing capabilities. After all of the experience data was adjusted to a common base level, we used our Summit® software product to smooth the data to develop an initial adjusted pure premium by ZIP code to reflect both experience in a ZIP code and in neighboring ZIP codes. The number of additional neighboring ZIP codes used was dependent upon attaining a sufficient exposure level.
The smoothed data was then clustered using Summit® on both a contiguous and non-contiguous basis. The insurer needed to decide whether to maintain relatively contiguous definitions or use more granular and theoretically accurate non-contiguous definitions. Using statistical measures, we identified and graphed optimal definition sets. Non-contiguous definitions were selected by the client. To minimize the number of territories with a limited geographic area or only a few ZIP codes, some manual combination of “outlying” ZIP codes with territories (clusters) with similar adjusted pure premiums was performed.
Finally, we assisted the insurer in developing the necessary filing support material to gain approval. The new program is generating new business in areas of historical profitability but previously less than average competiveness.
Underwriting & Tiering Analysis
A single state auto insurance writer hired Pinnacle to address its current rating and tiering program. We removed unnecessary underwriting restrictions and more adequately priced risk classes, which allowed the insurer to experience significant, profitable growth.
When we began, the company’s existing tiering design was only based on a few factors, including ones that significantly overlapped with the rating plan. When combined with the underwriting rules, the design was punitive and limited writable business. Through predictive modeling, we helped design a new tiering structure and applied an underwriting scoring approach to eliminate rating plan overlap and remove the overly punitive parts of the plan.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
November 27, 2018
Florida Chamber’s Annual Insurance Summit
November 27, 2018
Cayman Captive Forum