The market is evolving and there is increased pressure surrounding customer expectations, increased competition, greater diversity and automated business process impacting underwriting performance.
These changes provide a variety of new challenges when pricing and assessing risk for insurance carriers that are targeting foreign or unlicensed drivers.
The population in possession of a foreign driver’s license, otherwise known as an FDL, has increased significantly. Consider the fact that almost 30 percent of these drivers maintain a standard U.S. drivers license. The reason why many drivers claim FDL is to avoid the standard motor vehicle record pull and ultimately their violation activity detection, if their MVR were pulled.
How do insurance carriers compete? They need to meet expectations while simultaneously attracting and retaining the most relevant customers, all while effectively pricing risk. Keep in mind for insurance carriers that there is only poorly priced risk, not bad insurance risk, is of utmost importance.
Want to learn further on why validation is key in understanding and accurately pricing unlicensed or foreign drivers? Download our white paper on Appropriately Pricing Insurer Opportunities and Driver Risk.