Classifier is a powerful toolkit to provide detailed categorisation and assessment of risk by geography – a notoriously difficult challenge in the past. Used in combination with pricing models, such as those created by EMBLEM, it can deliver a holistic predictive model reflecting both geographic and non-geographic factors. It can accurately estimate geographical risk relativities at micro-zone levels, such as UK postcodes. Classifier is also able to combine internally and externally sourced data in a way that overcomes external data deficiencies. This enables profitable business to be written in areas where the insurer has little existing exposure
New version of Classifier (1.3) recently released - click here for details of how this can help your business.
Key Benefits
- Improved loss ratios by 1-2 points
- Increased price optimisation effectiveness
- Enhanced speed and flexibility in making pricing decisions
- Reduced risk in writing business with low historical claims experience
- Write business in areas with little exposure with control
- Enhances communication between analysts & underwriters through clear graphical presentation of results
Classifier helps you understand the underlying reasons driving loss statistics in any geographic area, allowing you to standardise your data and base pricing decisions on more accurate assumptions.
Significant competitive advantage and improvements in loss ratio can be achieved by using Classifier to systematically analyse how geographic location affects claims experience. The advanced analysis methodology encapsulated by Classifier means that, unlike other approaches, it is possible to accurately predict local variation of claims experience in densely populated areas where high degrees of spatial detail are required. Classifier is also able to combine internally and externally sourced data in a way that overcomes external data deficiencies, thereby enabling profitable business to be written in areas where the insurer has little existing exposure.
Map displays are augmented by other highly graphical outputs to visualise results at each step through the classification process. Like all EMB software, Classifier has a wide range of data import format options.
The Classifier approach recognises that a "one size fits all" solution to postcode allocation and geographic risk assessment is too restrictive. While retaining flexibility, Classifier enables what used to be overly time consuming analysis tasks to become part of a regular price review process, unlocking the competitive advantage available from improved understanding of geographical risk.
If you are interested in this software, please contact us at software@emb.co.uk .
