TransUnion [NYSE:TRU]: Data Analytics Transforming Underwriting

Jim Peck, President & CEO, TransUnionJim Peck, President & CEO
The increasing global risks and uncertainties cause tremendous pressure upon the underwriters to accurately collate information that ensures right decision making on policy eligibility, and premium amounts. The Coalition Against Insurance Fraud estimates that atleast $80 billion fraudulent claims are made annually in the U.S. For instance, if a rate evasion has been practiced on a particular current policy, it seemingly moves on to the next policy. Therefore, the underwriters have to take extraordinary measures while confirming information and monitoring the data for modifications and revisions during renewal and claims processing. The data analytics tools can help address this overtly overwhelming situation. Envisioning the power of accurate information, TransUnion [NYSE:TRU] provides the latest verification, big data and predictive analytics tools to assess the current risks within the insurance market. “With our advanced analytics and specialized market experience, we leverage data and capabilities that enable both consumers and lenders to make better decisions and meet their finance objectives,” asserts Jim Peck, President and CEO, TransUnion.

TransUnions’ innovative, credit-based and risk-management solutions help carriers access accurate data to enable more refined consumer and pricing segmentation practices. One of the formidable sectors of focus for the underwriters is the occupants of commercial residential properties. The latest reports indicate stupendous rise in claims concerning unidentified and unverified properties. The commercial habitats are usually susceptible to accidental and manmade disasters such as sudden fire breaks, and liability loses. The loss control inspection is highly expensive and time consuming endowing the underwriters with fragmentary and insufficient documentation. The underwriting and pricing of commercial residential properties has always been a huge confrontation for many insurance carriers due to lack of effective means to quarry well founded facts and insights about the occupants’ risk of having an insurance loss.

We leverage data and capabilities that enable both consumers and lenders to make better decisions and meet their finance objectives

The firm’s recently launched Habitational Risk—predictive analytics tool helps the insurance carriers assess in detail the risks involved with the occupants of commercial residential properties. “We see information not for what it is, but for what it can help people achieve. We believe, with the right information, people can achieve great things,” adds Peck. The Habitational Risk tool provides deep insight into the occupants of commercial properties during the underwriting process. This tool improvises on risk selection and thereby has a significant impact on the commercial residential insurance market.

TransUnions’ technology creates an aggregated risk profile that contains information such as two historical risk scores to assess how the property may have changed over time, average occupant age and age distribution, average occupant tenure and tenure distribution to measure overall occupant risk stability.

Complementing Habitational Risk, is the firms’ property risk verification platform that ameliorates in procuring comprehensive and all-inclusive information on occupants’ identity, property, occupancy and mortgage. The platform also helps in the identity verification of the policyholders, occupancy status of the property and mortgage confirmation with insights to foreclosure or delinquency. The firm ardently believes in uncovering unique stories, trends behind each data point, using historical information as well as alternative data sources.

With the global presence in more than 30 countries, TransUnion will be leveraging upon the new open source software, cloud computing and other technologies. “We will continue to deliver information to our customers, and this in turn will give them confidence to make the right decisions,” Peck concludes.