More depth and breadth of information allows for better risk management and price optimization—a balance that cuts losses without eroding market share. However, traditional data sources are limited, so it’s critical to widen your assessment of insurance policyholders with alternative data in order to make more strategic decisions.
A recent TransUnion study incorporating traffic and criminal violation data into homeowners policyholder assessments found that the inclusion could result in up to 2X improvement in loss ratio.
This opportunity offers several beneficial actions for homeowners insurance writers, including:
- refining pricing and underwriting
- introducing new discounts based on violation history, and
- triggering inspections based on certain violations
Check out the infographic to see more from TransUnion’s study. You can also read the insight guide, The Power of Alternative Data, for more highlights from our in-depth analysis.