Two companies, Praedicat and Verisk, recently announced new risk analysis products that your insurance companies may be using soon.
Preadicat\u2019s Company Risk Score (CRS) evaluates how risky a company is to underwrite, based on \u201chow exposed a company is to emerging risks that could drive litigation involving the company as a defendant.\u201d In other words, a company\u2019s CRS is an expression of its potential for getting sued.
The CRS is especially useful when evaluating a company\u2019s directors and officers insurance exposure, as it examines the potential for securities class action litigation risk.
\u201cAfter simulating \u2026 how harmful a companies\u2019 products and business activities are, we estimate the likelihood that litigation will emerge, targeting those product and business activities that scientists think cause bodily injury or environmental damage. We use the model results to distill a company\u2019s products and business activities risk into a single 100-point Company Risk Score,\u201d says Julia Fuller, Senior Vice President, Account Management at Preadicat.
\u201cBased on peer-reviewed science and objective third-party data, our evaluation is used by companies to better understand the impacts of their products and business activities, and by insurers to underwrite the liability risk of those same companies. As emerging risks get more and more complex, innovations like the Company Risk Score are helping make underwriting these risks a whole lot easier,\u201d said Fuller.
While Preadicat\u2019s Company Risk Score helps underwriters evaluate a company externally, gaining perspective on the litigation climate it operates in, another company, Verisk, helps underwriters look within the company. Verisk uses artificial intelligence to analyze data and ratings in Yelp reviews \u201cto provide insurers with a more holistic assessment of businesses.\u201d<\/p>\n\n\n\n
According to its press release, Verisk is leveraging artificial intelligence (AI) and image analytics to generate insights from more than 200 million reviews on Yelp, the company that connects people with great local businesses.
Using AI, Verisk analyzes unstructured data in Yelp reviews, including images that might indicate how a business has evolved. Insurers can use these insights to inform discussions about coverage with potential customers, see how employees are mitigating risks and make underwriting decisions with greater speed and precision.
\u201cFinding current and robust information online to underwrite small commercial insurance can take significant time and effort,\u201d said Tracey Waller, director of small commercial underwriting at Verisk. \u201cBy working directly with Yelp, Verisk is augmenting its high-quality and consistent analytics on millions of small businesses with information that is up-to-date, organized and easy to digest.\u201d
Through Yelp, Verisk says it can seamlessly integrate millions of data points, including \u201cYelp\u2019s trusted reviews and images in real-time, which supports Verisk\u2019s ongoing effort to help insurers accelerate their digital transformations\u201d and \u201cwin the race to zero questions on insurance applications.\u201d Yelp\u2019s platform, which enables consumers to discover, connect, and transact with millions of local businesses of all sizes, provides a powerful source of data for insurers that\u2019s constantly being updated.<\/p>\n\n\n\n