TrueRisk

Better predict risk, offer more competitive rates and more accurately price policies

TransUnion TrueRisk® is an industry-leading, credit-based insurance score that uses TransUnion’s individual-level credit data to predict the potential loss ratio for a given consumer seeking an insurance policy. Developed using TransUnion’s unique data, analytics and collaborative customer partnerships, TrueRisk provides higher-performing scores for both personal auto and homeowner lines of business. It provides unmatched predictive power, decreases no scores and no hits and is designed to meet increasing consumer and regulatory standards.

TransUnion works with State Departments of Insurance to file the TrueRisk model and can also provide the appropriate documentation to carriers who are required to file directly. You’ll be better equipped to predict insurance risk, streamline regulatory filings and price policies more accurately and competitively.

Using individual-level credit information to predict potential loss while reducing the occurrence of no scores helps you segment consumers by risk and potential loss ratio.

Applications

More accurately segment risk and make more informed pricing decisions.

Loss Ratio Analysis

The graph below illustrates a comparison of loss ratio relativities for TrueRisk and TUIRS 1.0, TransUnion’s earlier model.

• The TrueRisk model produces a 17% improvement in lift versus the TUIRS 1.0 model.
• Loss ratio relativities indicate additional pricing opportunity—the ability to more adequately price higher risk segments and improve competitive position on lower risk segments.