INSURANCE SCORING

ASSESSMENT OF POTENTIAL FUTURE LOSS RATIO OF INSURANCE POLICY HOLDERS ON THE BASIS OF THEIR CREDIT HISTORY DATA.

Insurance scoring is an analytical tool for assessment of potential future loss ratio of a CASCO policy holder on the basis of their credit history data. The result is produced in the form of a score. 
The score value reflects the customer’s loss ratio within the next 12 months. The scoring model is built using the logistic regression method. 

The service helps to achieve the following objectives:

  • Taking decisions on the amount of the insurance premium for various categories of customers;
  • Segmentation of insurance portfolio for assessment of future losses.

Advantages:

  • The scoring can be easily built in decisioning systems in actuary models;
  • The cost of using the service is insignificant in comparison with revenue increase (about 10% in the CASCO segment);
  • The model is regularly enhanced and updated.

Peculiarities of the insurance scoring:

  • The scoring was built using data on loss ratio of customers of insurance companies;
  • The highest efficiency is achieved using the service prior to making decisions on granting a policy to new customers.

How to join