Property PredictR® and PrePredictR®
FICO® Insurance Scores
The power of predictive analytics.
Millennium offers several predictive scoring solutions, two of which were developed in collaboration with FICO®. These solutions were developed by leveraging the extensive Millennium property database and the advanced analytic capabilities of FICO® to provide personal lines property insurance underwriters a wealth of data-driven intelligence. Property PredictR® is the first statistically developed model based entirely on property inspection data. It takes all the data points gathered and verified during the property inspection process, including property condition and replacement cost information, and applies them to an algorithm which was subjectively created by FICO and validated against Millennium’s national property database. Scores are delivered within completed inspection reports via Millennium’s Automated Property System (MAPS) platform, allowing carriers to reward the best policies, and to develop remediation plans for the riskiest ones. The results: a more accurate basis of property risk for faster, and more informed and profitable underwriting decisions.
Previously, gaining this level of understanding required manually reviewing each property inspection report. Now, Property PredictR® takes the time, tedium, and possibility of human error from risk assessment, while improving profitability.
This comprehensive scoring model is based on numerous characteristics that are properly weighted and added together to produce a score that ranks properties by their expected loss ratio relativity. Scoring parameters include:
- Site access
- Existence and scale of key building characteristics
- Number and magnitude of negative conditions
- Replacement cost valuation
- Many other key factors
For carriers who need a pre-binding rating tool, PrePredictR® helps develop an accurate quote at the time of application without conducting an immediate physical inspection. PrePredictR, a derivative of Property PredictR, contains numerous variables that are appropriately weighted and added together to produce a score that rank-orders applicants and policyholders by their expected loss ratio relativity. Scores are delivered to insurers via MAPS so carriers can offer their best pricing based upon risk tiers at point of sale while profitably growing their business.