How Data-Driven Decisions Transformed a Century-Old Insurer

The Challenge

With a focus on leveraging data to drive underwriting decisions, the carrier faced significant challenges concerning the price and quality of data provided by LexisNexis, its primary vendor. As they sought to increase profitability to remain competitive, the rising costs associated with LexisNexis's data placed a significant financial strain on their new and renewal business. In fact, the carrier was unable to check 95% of their renewal book for new activity, leaving them vulnerable to potential risks and premium leakage for over 180,000 policies. The insurer also had concerns about LexisNexis' data quality, which impacted its ability to assess risk consistently and accurately. These challenges prompted them to run a comparative test with SambaSafety, seeking alternate solutions to reduce costs without compromising quality or reliability.

The Solution

SambaSafety provided the carrier with flexible data solutions designed to improve underwriting precision and maximize ROI. By leveraging SambaSafety's data solutions, the carrier could identify drivers with clean records, avoiding unnecessary MVR orders and resulting in significant savings. The carrier could also access detailed violation reports without incurring costly state fees associated with direct MVR requests, further optimizing MVR spend.

The Results

SambaSafety provided the carrier with a solution that allowed them to assess 100% of their monthly renewal business for 90% less than LexisNexis. SambaSafety's data also outperformed LexisNexis in data quality, identifying more drivers with alcohol or DUI violations and reckless driving incidents. The carrier believes premium leakage to have impacted roughly 10% of their book. Leveraging SambaSafety to check for activity on all renewals, they anticipate identifying an additional 19,000 violations annually. Introducing fees alongside a premium increase, they estimate they can recoup nearly $3.8M in lost premium.