Improving The Outcome Of Your Business Process
New business tends to be unprofitable in the first three years. Most of the time this is a result of misrepresentation of facts on a new business application. Additionally, as underwriting models become more complex, obtaining accurate information is more important than ever to properly select the appropriate tier for new business. With URI's AVP program, our support center uncovers the facts on an insurance application.
What is AVP?
AVP is an information-gathering program that is an essential part of today's successful formula for writing profitable business. URI's Information Support Center verifies and validates information on all new business applications. Only applications with changes are referred to underwriting, saving you time and money. Once referred, you are able to correctly classify and rate new business and charge the appropriate premium for the risks you insure. Most AVP programs cost less per policy than historical reports such as motor vehicle reports and vehicle and loss history reports. Additionally, you identify hazards and mitigate losses by applying an extra layer of protection to your new business underwriting.
AVP Identifies Weaknesses and Helps You Beat the Odds
Studies consistently show that over 33% of the automobile policies written by P & C Companies are under-priced due to incorrect rating and classification. Consequently, you may be leaving significant amounts of premium on the table. In addition, your auto rating does not consider misrepresentation of facts, undisclosed operators, lack of integrity by agents and customers and operators incorrectly assigned to vehicles. OBTAIN FASTER RESULTS TO YOUR INFORMATION QUESTIONS OR GAPS.
To be competitive you need all the help you can get. AVP enables you to keep your hands on the pulse of the business and make a difference today, tomorrow and next year.
AVP Satisfies a Need
Some of the applications of the AVP Program include:
- Random verification of facts - By instituting a random sampling of policies, you can be assured that producers and customers will be more diligent in the application process.
- Integrity issues are suspected - URI can tailor an approach to monitor specific agencies or producers.
- Probationary Agents - The AVP program adds another tool to your producer rehabilitation efforts.
Put AVP to Work for You
AVP helps protect your rate and your competitiveness. The program assists in the correct rating and classification of more policies and subsequently results in more appropriately priced policies. In addition, you can deal with new exposures uncovered in the process sooner. Your payoff? Profit maximization!
The Process
A simple routine pulls electronic policy records from your system. By verifying initial information, the AVP Program is able to fill in gaps after the application is complete. You will then receive a report of the policies to review. In order to reduce your processing efforts, we can format the information returned to you in a manner that suits your processing needs.
A Challenge
Do you know what percentage of your personal automobile applications are incorrectly rated?
If your answer is yes, consider yourself lucky. Why, because our findings indicate
very few do know!
Consider this:
During a promotional campaign, one of our AVP users found that 8.5% of their
applications contained drivers rated or not disclosed. In the same campaign,
35.4% of the vehicles insured were under-priced because of inaccurate or
misleading information on the initial application. If this continued, imagine
how damaging this would be to their future rate making and competitive position.
The More Things Change...
In 1991, nearly 1/3 of survey respondents considered it reasonably acceptable to misrepresent some kind of information when completing auto insurance applications. Ironically, here is an example of what a URI customer is finding with the AVP Program during the first quarter of 1999.
Automobile Applications Identified as Under Priced
Drivers Not Rated or Undisclosed Actively Driving the Prospective Insured Vehicle
AVP-Underwrite your new business applications more effectively.
For more information, Contact Us