Brokers targeting the UK’s van drivers can now promise premium quotations from Ageas, based on the individual circumstances of the customer rather than more generic post code level underwriting. Following the successful adoption of dynamic pricing in private car in 2012, Ageas is rolling out the new rating process for its Van Guard policy. Van Guard offers cover for small businesses and sole traders using vans up to 3.5 tonnes, as well as individuals using vans for personal use.
Ensuring pricing accuracy while identifying the future risk of fraud, the new pricing structure uses publicly available data from a variety of sources to offer customers a more informed and therefore fairer quotation based on their personal circumstances. In some circumstances this will deliver a more competitive premium putting brokers in a strong competitive position when securing new business.
In partnership with Insurance Initiatives Limited and Callcredit Information Group Limited, Ageas’s new rating system takes the name, date of birth and address of the applicant and immediately returns a risk score based on publicly available information.
As part of Ageas’s commitment to help ensure honest policyholders are not paying for the dishonesty of some others, applications are also checked against the CUE database and SIRA (Syndicated Intelligence for Risk Avoidance). SIRA allows Ageas to check the information provided against known fraud data recorded by other financial organisations, including insurers, banks and building societies.
In 2013 Ageas collected £1.6m in additional premium as a result of CUE information and approximately 200 risks per month are cancelled or choose to “walk away” as a result of CUE investigations. Ageas also voided an average of 850 motor policies per month in 2013 as a result of SIRA checks.
Adam Clarke, Underwriting Director said: “Dynamic pricing delivers on a number of levels. It not only enables us to provide quotes that precisely match the individual profile of the customer, promising a fairer premium, it helps combat the rising issue of application fraud.
Since introducing dynamic pricing in Private Car we have seen a significant improvement in our underwriting performance; brokers and customers have greater clarity around the risk from the off and customers know the premium offered matches the risk they represent. We intend to replicate this success in the underwriting of our popular Van Guard policy.”