When an actuary and the head of agent marketing couldn’t agree on the right approach to take with agents with poor prior loss results, we built a predictive model to predict future loss ratios, using data already available to the company. We were able to identify tiers of agents so that rewarding (for the good agents) and preventative (for the bad) actions could be enacted. Sales managers reported that the tiers fit their intuitive sales senses more accurately than did a simple LR review.
Agent Quality
Do you know which of your agents will be profitable this year? While you can always look backward to prior year Loss Ratios, that is not always the best predictor of future Loss Ratios, especially given the low credibility typically found in agent-by-agent results. We’ll show you how to mine your agent data to find the gems and the duds, before the loss ratio problems arise.
Agents are an intensifier of underwriting quality. The best ones will protect you in ways your pricing and underwriting may miss, but the worst ones will find and exploit all those same holes.
Contact iji today for a free, no-obligation discussion of agent quality.