MultiVariate Analyses using Minimum Bias Functions

• 5 functions:

  • Balance Principle

  • Least Squares

  • X-Squared

  • Maximum Likelihood for a Normal Density Function

  • Maximum Likelihood for an Exponential Density Function

• Can handle an unlimited number of Dimensions and Classes within the Dimensions
• Insurance-Dedicated Version and Generic Version available

Detection of Interaction between Variables using CHAID

• Chi-squared Automatic Interaction Detector

• Divides a population into classes that differ with respect to a designated criterion
• Derives classes that are mutually exclusive and exhaustive
• Can define statistically significant homogenous groups of ZIP codes and Territories
• Can identify likely claimants
• Can identify prospective insureds who are most likely to respond to a promotion
• Results displayed in a Decision Tree Diagram, Cross-Tabulation Tables and Gains Charts

Refinement or Development of your Rating Territories; using:

• Your underwriting experience
• Competitors’ rates and/or underwriting experience
• U.S. Census data

Mapping by region, city, or zip code; of:

• Your rating territories
• Your selected underwriting experience
  • Average Loss per Adult Driver
  • Loss Ratios
  • Any other statistic you wish
• Your Exposures (e.g.: homes, automobiles)
• Your agencies
• U.S. Census Data
  • Percent of Population that is Rural
  • Population per Square Mile
  • Number of Vehicles per Square Mile
  • 27 additional measures

Private Passenger Automobile Ratemaking; 4 levels available

• Basic: determination of indicated overall rate change for each coverage; accepts changes to Relativity Factors
• Limited: Basic plus determination of Territory Relativity Factors
• Standard: Limited plus determination of Driver Class and Tier (optional) Relativity Factors
• Bi-Variate: Basic plus determination of Territory and Driver Class Relativity Factors by way of a simultaneous analysis of both dimensions using any one of three Minimum Bias Functions: Balance Principle, Least Squares, and X-Squared

• Our generalized ratemaking model can be customized for most lines of business and ratemaking preferences
• Models are programmed in Visual Basic and JavaScript and in markup languages XML and HTML
• Models can be Desktop, Network, or Web based

Smaller Insurance Company Management

• Consulting Services available in all areas of expertise
• provided by our principal: a former 20-year CEO of an A-rated regional carrier.

Workers Compensation Consultants

• We review workers compensation premium charges and audits
• We provide services on a contingency basis: if no premium refund, no fee