Premium leaks worth $3 bn, in IT hands now

DENVER, US: Overland Solutions, Inc., a supplier of premium audit and Underwriting Exposure Verification (UEV) services, and Valen Technologies, a supplier of predictive analytics to the P & C Insurance market, announced a partnership designed to combat the growing premium leakage problem for Workers’ Compensation and General Liability insurers.

The combined services of Overland Solutions and Valen will identify premium leakage resulting from misclassified Workers’ Compensation and General Liability policies. RateRight, Valen’s latest predictive analytics product is designed to identify policies at high risk of misrepresented payroll. Used in combination with Overland Solutions’ UEV services the expected exposures can be validated and rectified. Insurers who adopt RateRight and Overland Solutions UEV service will have the ability to provide higher quality service, manage their risks, identify fraudulent activities and collect unpaid premium.

“Based on an analysis of five million premium audit results, an estimated 45% of Workers’ Compensation and General Liability policies have some form of misclassification,” said Dan Bankson, SVP of Analytics at Valen Technologies. “The estimated leakage is about four per cent or approximately $3 billion annually which needs to be absorbed by the insurance industry.”

“We are very excited about the Valen partnership as we believe it will provide a natural expansion of the products and services that OSI provides to its client base,” said David Robinson CIO at Overland Solutions Inc. “We are also optimistic that RateRight is only the first offering that this partnership will bring to the insurance market place.”