Enhance Profitability
Your data is the key to improving results. Insurers are not experts at extracting actionable intelligence from data. Their attempts often result in paralysis by analysis, or worse, they hire consultants who rack up billable hours while they try to learn how insurance works. BMS takes a different approach. We developed methods for identifying which types of risks are prof itable and which are unprof itable. More importantly, we produce answers that lead to increased prof itability in the future, not just today.
Case Study Texas and Louisiana are difficult states to write homeowners (HO) business due to natural perils and the huge dichotomy of home types. To the right we show the profitability by county/par - ish. Our unique analysis revealed that the existing rating plan appeared adequate for HU but was underpricing SCS in Tier 2 and 3. On the next page, we show excerpts of a profitability study we performed for a client on their Texas & LA HO book. Note that we looked at dozens of policy and coverage characteristics beyond what is shown here. The client used this information along with supporting actuarial work from BMS to revamp their rating plan and improve profitability.
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