After creating a profit/loss metric for each policy, we analyze insured and coverage characteristics to determine commonality, including:
Answers Not Output Typically our competitor’s output is comprised of a list of policies that appear unprof itable, with a suggestion that you non- renew them. Interesting, but not particularly insightful, because the next year, a new list of policies crop up because you did not change anything, you just non-renewed a “faceless” list of policies. What we provide is a face for these policies by taking the extra step of identifying common attributes of policies that make and lose money for you. Once identif ied, these can be compared with your rating plan and we can stress test how subtle price changes could lead to large changes in overall prof itability. The goal of continual, long- term improvement can never be reached when you act without learning.
ظ Territory ظ Roof Type ظ Deductible ظ Distance to Coast ظ Occupancy ظ Square Footage ظ Construction ظ Policy Type
ظ TIV/Limit ظ Cat/Non-Cat Ratios ظ Year Built ظ Agent Group ظ Business Unit ظ Number of Stories ظ Premium Size ظ Protection Class
Profitability Study
Number of Stories
Square Footage
By cross referencing the two variables above it became clear that smaller houses were losing money while larger houses appeared more profitable.
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