Technology will allow more accurate pricing and better fraud detection
Ageas is to launch dynamic pricing for its Van Guard policies, allowing brokers to offer more tailored premiums.
The launch will see Ageas work in partnership with Initiatives Limited and Callcredit Information Group Limited to use the name, date of birth and address of the applicant to immediately calculate a risk score based on publicly available information.
Applications are also screened using the CUE database and Syndicated Intelligence for Risk Avoidance (SIRA). This allows Ageas to check the application against known fraud records from other organisations including insurers, banks and building societies.
Ageas launched dynamic pricing for its private car policies in 2012, but the technology is now available for small businesses and sole traders using vans up to 3.5 tonnes as well as individuals using vans for personal use.
In 2013, Ageas collected £1.6m in additional premium and approximately 200 risks per month were cancelled or chose to “walk away” as a result of using the CUE database.
Ageas also cancelled an average of 850 motor policies per month in 2013 as a result of SIRA investigations.
Underwriting director Adam Clarke said: “Dynamic pricing delivers on a number of levels. It not only enables us to provide quotes that precisely match the individual profile of the customer, promising a fairer premium, it helps combat the rising issue of application fraud.
“Since introducing dynamic pricing in private car we have seen a significant improvement in our underwriting performance; brokers and customers have greater clarity around the risk from the off and customers know the premium offered matches the risk they represent.”
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