How NIG is using data to improve their risk pricing and underwriting decisions

Authored by NIG

We’ve been refining and enhancing our approach to data and analytics to improve our risk pricing and underwriting decisions.

What has changed?

Using data providers to enrich each quote: While a lot of the decisions we make are still driven by the information provided through our risk capture, we are now using data providers to enrich each quote with information about policyholders, companies and addresses. This allows us to provide a price and decision which is far more tailored to the customer. 

For example, automated lookups at point of quote, can uncover credit impairment which may not have been disclosed.  We can then work with our partners to help clarify this information, ensuring clients’ circumstances are fully understood at inception, rather than claim stage.

Introducing address-level pricing: We’ve also done a lot of work behind the scenes, to help us better understand our performance and how-to better price risk.  We have automated far more geographic factors into our address rating, using our premises data to help provide a price which is unique to the risk.  Previously, most of our geographic factors were summarised at postcode level. This means we can ensure we are confident with the risk being placed, with less need for underwriter postcode checks and manual referrals.

What’s the benefit?

These changes mean we can automate more and bigger risks than ever before, reducing the time taken to get risks on cover and ensuring pricing is more accurate – leading to better profitability for brokers. Having enhanced validation at underwriting stage also helps to avoid delays in claims.

What’s next?

Moving forward, we plan to develop tools to improve quote journey speed and execution through fewer questions and more intelligent data-driven solutions. Watch this space.

To find out more about our digital capabilities and how they could benefit you, speak to your usual NIG contact.