How Active Risk Management Drives Better Insurance Underwriting
Customers who are negatively affected by active risk management are more likely to leave, while the others may be more likely to remain.
Getting a better handle on risk reduces premium leakage, which more than pays for the costs of an active risk management program.
Comparing insured to peers helps to clarify which events are individual circumstances and which are part of larger trends.
Getting a wider view of actual risk means better risk pricing, which benefits loss ratios.
Monitoring changing customer risk allows insurers to better assess which customers are the riskiest.
