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TRANSUNION WHITE PAPER

Managing Rate Evasion: Preempt Your Risk to Increase Profitability

January 2011
Rate evasion is a costly problem for personal-passenger insurance carriers and each carrier addresses the issue differently.

All carriers have some element of rate evasion built into their rating plans, which is unfortunate for the honest policyholders. Many carriers have rate evasion solutions that address the problem after the policy is issued. This is a difficult and expensive solution, and not the most effective approach. Using this method, carriers miss the majority of rate evaders, and in some cases will find a claim has already occurred before they are able to fully investigate the application data.

It is critical for carriers to address rate evasion in real-time during the quote process, prior to issuing a policy. An effective point-of-sale rate evasion tool will provide carriers with the opportunity to remove costs from their rates, build a competitive price advantage and reward their honest policyholders. TransUnion Risk Verification Platform allows carriers to do just that.