Pinpoint helped reduce Loss Ratio by 7 points by focusing on Book Acquisition Strategy
Client: National Home Insurance Carrier
Line of Business: Home Insurance
Number of Policies: 100,000
Average Premium: $150-200M
A national home insurance carrier partnered with Pinpoint to receive Loss Predictions at the top of the funnel (before the customer journey begins). Their current models are only available after the application is fully developed and all reports are ordered (e.g. Property Loss Reports, Inspections, Replacement Cost Reports, Credit, Prefill). In contrast, Pinpoint predictions are available before the application is developed, as soon as a customer name and address is known.
Loss Prediction Claims Frequency Results
ROI Calculator Results
The carrier’s year-one loss ratio impact using Pinpoint’s prediction estimated a 7.03 point loss ratio improvement with a total loss ratio improvement of 14.91 points after the third year.
The client saw a 1st-year ROI of over $58M and a total 3-year ROI of over $335M for their carrier’s homeowners book of business using Pinpoint Loss Predictions.
Our ROI calculator incorporates the predictive model’s lift by decile to project how new insights can prioritize actions to align with the carrier’s goals of profitable growth.
Why Work with Pinpoint?
Pinpoint’s Lift Charts allow carriers to identify individuals with an exceptionally high loss ratio for whom they do not have an adequate rate. This early prediction, available as soon as they have someone’s name and address, helps the carrier flag an alternate application journey for that potential insured. Pinpoint’s Loss Predictions can help unlock a new source of intelligence for home carriers to fast-track their profitable growth.