David Oliver tailors travel quotes with claims data

Travel underwriting agency David Oliver Associates has launched a rating model that tailors quotes to a customer’s specific age, travel destination, and the length of their trip.

The system has been two years in the making and includes 2.2 billion different rating permutations. It is based on three years of travel claims data from AXA, which has provided capacity to David Oliver since May 2009 and is the insurer’s preferred travel insurance partner.

Today AXA announced it had signed a deal to provide £20m of capacity over the next five years for brands including SunWorld Travel.

David Oliver has also agreed a £1m facility with Union Reiseversicherung (URV) for its SunWorld Extra products. URV sells cover to customers who may be rejected for a standard product because of a pre-existing medical condition, including terminal illness, or age. The capacity was previously provided by Groupama.

The new rating engine, known as a burn cost rating (BCR) system, makes David Oliver’s prices more competitive and better targeted for risks that are less likely to claim, said director Matthew Oliver.

“The market groups everything together so you end up with countries like France, Italy and Holland subsidising more toxic locations like Spain,” he told Insurance Times.

The BCR system also means older customers can sometimes get a cheaper quote. “For example, data show a 60-year-old in Magaluf is a better risk than a 25-year-old,” Oliver added.

The system, which is accessed via David Oliver’s online portal, allows brokers to add a commission or set an administration fee into their quote.

Brokers can also tweak parts of its cover, such as baggage limits and cancellation cover.

Since launching last week, Oliver said sales had risen by 80% and described its rates on European travel as “almost untouchable”.

David Oliver Associates is now working on a white-label system for the affinity market, which it hopes to launch by Q2 next year.