Improving our risk culture through behavioral changes
(Lafayette, La.) — Former Louisiana Insurance Commissioner Robert Wooley of Adams and Reese introduced Evalscore® founder Dwayne Hargroder who addressed the committee by stating “In today’s insurance industry, the agent/broker distribution system continues to be labor intensive in the procurement of historical commercial policyholder loss data contributing to agency devaluations while impairing policyholder options,” but, that is just the beginning.
In order to improve insurance industry expense ratios and enhance risk management efforts through behavior modification, Evalscore® has proposed a patent pending C.L.A.I.M. Index® (Comprehensive Loss Aggregation of Insurance Measurement).
Currently, commercial insured’s must sign numerous authorizations for the release of historical loss history information as it is locked in individual company silos. However, much like the release of credit information today, Evalscore® proposes a single authorization system for policyholders as part of the insurance application in order to obtain their historical loss data aggregated and scored in real time. A recent survey conducted by a national independent agents association revealed that over 93% of respondents desired such a program.
“It is difficult to obtain the loss history, even though Louisiana has a statue providing a 30-day time frame for insurers to furnish this data upon written request,” says Robert Page, agency principal and former President of the Professional Insurance Agents Association of America.
It is more than agency efficiency. Hargroder states “Companies also struggle with the time lapse of experience modifiers on qualified commercial insured’s in order to evaluate their vendor relationships. They not only need to know the loss experience of prior years, but what happened yesterday as well. And we have a solution for that,” says Hargroder. As a companion to the emod, Evalscore®’s C.L.A.I.M. Index® would provide real time access to policyholder loss history since the promulgation of the emod with real time monitoring capability provided by Evalscore®’s patent pending Evalscore® A.L.E.R.T™ system (Aggregated Loss Experience in Real Time). Within this proprietary program unlike the experience rating system that is not available to all insured’s, authorized persons will be able to “monitor” the insured’s performance in real time by establishing benchmark scores for coverages such as general liability, commercial auto, workers’ compensation including an objective proprietary employee CompScore™ safety system for workers compensation driving-enhanced behavior, improving workplace safety.
Hargroder stated, “Although the industry has brilliant analytics for internal diagnostics, Evalscore® is the first to propose an external real time index for transparency driving accountability and improving our risk culture while compensating participating insurers for each data inquiry. We will show how valuable this information is to customers, employers, vendors, insurers, and lenders, while providing a regulatory tool for the proposed “modernizing solvency standards” initiative.
Evalscore®’s patent pending C.L.A.I.M. Index® is based upon the theory that people deliver what they are accountable for. A recent study conducted by Dr. Michael Kalish of the Cognitive Science department at the University of Louisiana at Lafayette cited a 36% improvement in behavior of credit customers since the advent of the “credit score” and acknowledged the correlation to Evalscore’s® proposed index.
Hargroder concludes, “If we can improve behavior with only half the success of the credit industry through these accountability measures, we could see billion dollar improvements to agents, insurers and policyholders.”