Since 2007, premium shrinkage has taken its toll on the insurance industry. A number of factors have contributed to the decline in revenue, such as a struggling economy, changing demographics, and increased competition. During the last six years the industry has responded by improving its customer oriented approach, developing new products and expanding into the non- standard Insurance space.
Regardless of the customer category, carriers are faced with the task of managing risk, reducing fraud and stabilizing and growing insurance premiums. While some of this can be addressed by providing great products and customer service, there is increasing pressure being placed on underwriting and marketing departments to perform.
Currently, the market offers limited insurance scoring and credit profiling tools for the underbanked and unbanked customer demographic. Many of these individuals tend to have little to no financial information within traditional credit bureau files and even less predictive data that can be used to identify or manage risk.
Adding to the complexity, the demographic mix continues to shift. Millennials are 27% of the U.S. population, a larger segment than the baby boomers, and many are underbanked. Hispanics make up over 16% of the US Population and are one of the fastest growing populations. Given their significant share of the non-standard auto sector, carriers will increasingly need access to tools that inform their decisions.
FactorTrust provides insurance carriers with the first comprehensive data set on a traditionally discreet customer category. In conjunction with public data FactorTrust’s proprietary tools that enable insurance organizations to: