Pinpoint Predictive Commits to Protect P&C Insurers from Adverse Selection

San Mateo, CA (Aug. 22, 2023) – Pinpoint Predictive, Inc, an AI-powered Loss Prediction and Risk Score platform, is taking a stand in its commitment to safeguard the insurance industry from the continued exposure to adverse selection, and offers insurers an innovative alternative to negate the issue currently affecting the industry and market as a whole.

Adverse selection continues to be a significant concern for the insurance industry, as insurers are exposed to higher amounts of risk without appropriate compensation to offset their losses. Pinpoint’s unique approach to reduce the exposure of risk empowers carriers to make individual risk decisions at the earliest point in the customer journey.

“In this challenging market where carriers have seen loss costs increase at such a rapid pace, they can’t get rate increases through fast enough.” said Shannon Shallcross, Head of Client Services at Pinpoint Predictive. “Consequently, in many states carriers are operating at a loss. The challenge here is that as rate increases take effect, we’re seeing an active market of price shoppers. The danger is that carriers are vulnerable when they look attractive to customers when they do not have an adequate rate for the risk. It’s this perfect storm that destroys their profitability.”

“Under normal market conditions, insurers are able to balance losses and assume risks proportionate to their approved rates. But with growing weather-related concerns and social inflation perpetuating hard market conditions, the industry as a whole is struggling to balance books.” said Nick Gerhart, former Iowa Insurance Commissioner and member of Pinpoint’s Board of Directors. ”The essential strategy to evade the challenges of adverse selection involves enhancing insurers’ ability to forecast future risk, alongside establishing actuarially valid premiums and considering individual risk attributes.

Pinpoint’s revolutionary technology is positioned to shift the trajectory for insurance companies, leveraging trillions of individual behavioral predictors, and empowering P&C insurers to proactively quantify customer risk at the earliest possible stage. This provides access to invaluable insights before underwriting and quoting processes begin.

Pinpoint’s loss predictions and risk scores reduce the impact of adverse selection by helping carriers unlock 3 to 10 loss ratio points in home, auto and commercial lines of insurance. For more information on how Pinpoint’s AI-powered behavioral predictions can help avoid the pitfalls of adverse selection, contact [email protected].

About Pinpoint Predictive

Pinpoint Predictive provides P&C insurers the earliest and most accurate loss predictions and risk scores to fast-track profitable growth. Unlike traditional methods, Pinpoint’s platform leverages deep learning, proprietary behavioral economics data, and trillions of individual behavioral predictors to help insurers identify the risk costs associated with customers and prospects. Insurtech 100 Awards 2022 | Insurtech Vanguard. For more information, visit www.pinpointpredictive.com.

Source: Pinpoint Predictive, Inc.

Tags: Artificial Intelligence (AI), platform, Predictive Analytics, predictive modeling