Predictive Price Analysis Helps Insurers
Quadrant Quick Take: A new tool lets insurers predict competitors’ future rate changes.
In a highly competitive and fluid insurance market, it’s not enough just to know other carriers’ current rates and compare them to your own. Knowing your competition’s current rates is important—but wouldn’t you rather know their new rates before they happen?
To help you do that, Quadrant introduced InsureWatch—LookingGlass, a predictive analysis tool built into our cloud-based InsureWatch pricing analytics system. While we strongly believe that competitive pricing based on current rates is important—we’ve been providing the information necessary for carriers to do that for nearly 25 years—a huge setback can occur when competitor rates are finalized and approved during the process, making the current-rate study and analysis dated.
InsureWatch—LookingGlass 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.
The data set on which InsureWatch—LookingGlass bases its projections is the largest and most comprehensive in the property and casualty field. Due to our close ties to the industry, and the atmosphere of mutual trust that has been built during our nearly 25 years in business, 60% of our rate data comes directly from large national carriers.
In addition to the powerful capabilities and user-friendliness of the tool itself, users of InsureWatch—LookingGlass will be supported by Quadrant’s widely acclaimed customer support and training program. On request, the company will provide unlimited hours of customer assistance.
A rigorous quality assurance process, combined with our 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—LookingGlass, and the experience of its early adopters, show that the tool delivers stable, highly accurate forecasts.
InsureWatch—LookingGlass 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.
At Quadrant Information Services, our business is helping p&c insurers become better competitors in a competitive world. Check out what we have to offer—it may surprise you!