If assessing risk is the central function of insurance companies, the auto insurance sector could be doing its job a little better.
So says Quality Planning Corp., a San Francisco-based company that works with providers to ensure the accuracy of policyholder information.
It seems that many drivers are less than forthcoming when it comes to providing information to their insurers. In fact, an audit of over 12 million auto insurance policies from 10 major carriers performed by Quality Planning found that incorrect information contributed to rating errors that were costing the industry approximately $13 billion a year in revenue.
“What we do is, we get that information right,” says Quality Planning president Daniel Finnegan. The company uses a battery of complex statistical analysis and thousands of detailed databases to accurately assess the characteristics and associated risks of policyholders and then rewrites any errant policy with these findings in mind. And while that may mean higher premiums for some, it also protects honest car owners from subsidizing the dishonest.
“A lot of our goal is to make sure low-risk people get the premiums they deserve,” Finnegan says.
Quality Planning works with some of the biggest insurance companies in the nation, including AAA, Allstate and Aetna. The company offers its assessment and underwriting services on either on a project or ongoing contract basis.
A statistician by training, Finnegan worked in the public sector, doing policy analysis and developing models for the federal government before founding Quality Planning in 1986.
Initially, the company worked in several areas of insurance, most prominently claims fraud, but in the last few years Quality Planning has narrowed its focus exclusively to the auto insurance sector.
“It was a big bet,” Finnegan says of the decision. “There was a lot of nervousness about giving up our underlying base.”
The move, however, has paid off handsomely, as Quality Planning’s revenue increased 350 percent last year, despite the battered economy. In light of that, the company is quite content to stick with its current formula, and has no plans to expand its scope. It continues, however, to devote significant time and resources to research and development, upgrading and expanding its data analysis programs and tools to maintain its technological edge.
Quality Planning does not advertise, but rather has relied on a “proof is in the pudding” philosophy to sell its product. “For every dollar that the company gives us, we give them eight or 10,” says Finnegan.
May 4 2003
By the Numbers– S.F. Business Times Interview
By the numbers
Quality Planning helps insurers verify drivers are playing by the rules
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If assessing risk is the central function of insurance companies, the auto insurance sector could be doing its job a little better.
So says Quality Planning Corp., a San Francisco-based company that works with providers to ensure the accuracy of policyholder information.
It seems that many drivers are less than forthcoming when it comes to providing information to their insurers. In fact, an audit of over 12 million auto insurance policies from 10 major carriers performed by Quality Planning found that incorrect information contributed to rating errors that were costing the industry approximately $13 billion a year in revenue.
“What we do is, we get that information right,” says Quality Planning president Daniel Finnegan. The company uses a battery of complex statistical analysis and thousands of detailed databases to accurately assess the characteristics and associated risks of policyholders and then rewrites any errant policy with these findings in mind. And while that may mean higher premiums for some, it also protects honest car owners from subsidizing the dishonest.
“A lot of our goal is to make sure low-risk people get the premiums they deserve,” Finnegan says.
Quality Planning works with some of the biggest insurance companies in the nation, including AAA, Allstate and Aetna. The company offers its assessment and underwriting services on either on a project or ongoing contract basis.
A statistician by training, Finnegan worked in the public sector, doing policy analysis and developing models for the federal government before founding Quality Planning in 1986.
Initially, the company worked in several areas of insurance, most prominently claims fraud, but in the last few years Quality Planning has narrowed its focus exclusively to the auto insurance sector.
“It was a big bet,” Finnegan says of the decision. “There was a lot of nervousness about giving up our underlying base.”
The move, however, has paid off handsomely, as Quality Planning’s revenue increased 350 percent last year, despite the battered economy. In light of that, the company is quite content to stick with its current formula, and has no plans to expand its scope. It continues, however, to devote significant time and resources to research and development, upgrading and expanding its data analysis programs and tools to maintain its technological edge.
Quality Planning does not advertise, but rather has relied on a “proof is in the pudding” philosophy to sell its product. “For every dollar that the company gives us, we give them eight or 10,” says Finnegan.
By Daniel • Uncategorized