Denver, CO – Valen Analytics®, an Insurity company, recently announced the results of the company’s third annual ROI study, which highlights the evolution of data-driven insurers and their ability to consistently outperform the market. From 2012-2017, Valen customers collectively saw loss ratio improvement of 3-9 points better than the industry average, while achieving 53% direct written premium growth, compared to 18% growth for the market. Results were calculated from 20 workers’ compensation customers, totaling $1.8 billion in premium.
For the first time, Valen’s study isolated insurers with profitability challenges prior to the implementation of a predictive analytics program. On average, this group of insurers experiencing loss ratios of 60% or more dramatically improved loss ratios to mirror the market average within the first year (from 2012-2013). They were also able to continuously outperform the market each subsequent year through 2017. This highlights the significant immediate and long-term impacts of predictive analytics solutions.
“The results of our studies have repeatedly quantified the unparalleled top and bottom line results for data-driven insurers,” said Kirstin Marr, president of Valen Analytics. “This year, we’ve taken the data further to display how our customers consistently grab profitable market share and beat the competition by more accurately aligning price to the risk exposure.”
This is the third consecutive year that Valen has studied its client base. Previous iterations of the study demonstrated similar and consistent improvement in loss ratios and profitability. Insurance carriers included in the study have been engaged with Valen Analytics for 2-5+ years.
“Whether incorporating standalone products or a holistic solution, we offer insurers a deep understanding of the insurance market that meaningfully impacts top and bottom line results,” said Michele Shepard, Chief Revenue Officer at Insurity. “From analytics that allow insurers to more accurately understand their risks through cloud initiatives that expedite implementations and lower TCO, the Insurity product suite continues to demonstrate tremendous value to our customers.”
Details on Valen Analytics’ ROI study can be found here.