Quadrant Introduces InsureWatch Looking Glass, Predictive Pricing Analytics Tool for Insurers
May 9, 2016
This new algorithm-driven business intelligence tool enables insurance carriers, for the first time, to predict competitors’ future rate changes.
(Pleasanton, CA) May 09, 2016—In a highly competitive and fluid insurance market, experts say it’s not enough just to know other carriers’ current rates and compare them to internal rates – to build an effective long-term marketing and sales strategy, being able to predict what the market will look like six months or a year out is a necessity. To provide that capability, Quadrant Information Services has introduced InsureWatch Looking GlassTM, a predictive analytics tool built into its cloud-based InsureWatch pricing analytics system.
InsureWatch Looking Glass builds its predictions by analyzing data for major carriers going back more than 10 years on a month-by-month basis and comparing those actual rate changes to the way the algorithm would have predicted them. Once the tool has selected the pricing algorithm that gives the closest match to each company’s historical behavior, it can accurately anticipate competitors’ future pricing strategies.
Based on those projections, a carrier, with consulting from Quadrant’s experts, can compare and review its own future positioning.
“While we strongly believe that competitive pricing based on current rates is important, a huge setback can occur when competitor rates are finalized and approved during the process, making the current-rate study and analysis dated,” says Michael Macauley, CEO, Quadrant. “Not only that, even the best current-rate analysis provides no answers to what the competition will do in the future. Knowing your competition’s current rates is certainly very important. But wouldn’t you rather know their new rates before they happen? How long did your last rate change take? Were your rates already old when they were approved?”
Quadrant, a pioneer in insurance industry data analytics, has worked with all the major insurance carriers in the United States. The data set on which InsureWatch Looking Glass bases its projections is the largest and most comprehensive in the property and casualty field. Due to the company’s close ties to the industry, and the atmosphere of mutual trust that has been built during Quadrant’s nearly 25 years in business, 60% of its data comes directly from large national carriers.
A rigorous quality assurance process, combined with its partnerships with leading national carriers, allows Quadrant to deliver 99%+ accuracy in its current pricing comparisons. While projections are necessarily somewhat less precise, test results from InsureWatch Looking Glass, and the experience of its early adopters, show that the tool delivers stable, highly accurate forecasts. “InsureWatch Looking Glass does exactly what it was designed to do. It provides an accurate look at the competitive field a carrier will be facing in the future, and enables both sales and management to develop strategies that will help them avoid losing the right customers and winning the wrong ones,” says Macauley.
In addition to the powerful capabilities and user-friendliness of the tool itself, users of InsureWatch Looking Glass will be supported by Quadrant’s widely acclaimed customer support and training program. On request, the company will provide unlimited hours of customer assistance.
InsureWatch Looking Glass is the latest in a long line of new technologies Quadrant Information Services has provided for the property & casualty insurance industry. New tools are in the works and will be announced in the coming months. As innovators in the field, Quadrant is constantly looking at ways to improve, and to some degree reinvent, the industry with the objective of helping its partners make better, faster, more profitable decisions.
About Quadrant Information Services:
Quadrant Information Services, headquartered in Pleasanton, CA, provides pricing analytics solutions for property and casualty insurance companies. Quadrant gives actuary, product development, pricing, sales, and marketing personnel at its client companies—who include all the major insurance carriers in the United States—with the data they need to make accurate, data-driven decisions. An industry innovator since its founding in 1991, Quadrant has provided the P&C insurance field with a long series of technological advances, most recently InsureWatch, the industry’s first cloud-based pricing tool, which allows the user to produce unlimited combinations of reports with the click of a mouse. For more information, and to learn why Quadrant is for insurance companies that are tired of losing the right customers and winning the wrong ones, please visit www.quadinfo.com.
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Karla Jo Helms