An analysis of the incoming quote submissions to seven major U.S. commercial barriers between January 2017 and January 2018, was performed by a global fintech company, Intellect SEEC. The outcomes are staggering.
Although it is common that clients or brokers, in the insurance industry, portray risks in the light to get better rates through underwriting, the impact on pricing and loss ratio—with the use of Intellect’s big data and AI toolkit—has been statistically proven for the very first time. It was found that material errors in key rating and underwriting fields like business operations details, revenue, employee count, and key disclosures about operational practices and safety history, were present in up to 30 percent of submissions.
It has remained almost impossible…
