Carrier Refines Policy Valuation Capability
CCI calculates estimates by tracking accurate values for inventory found in over 900 categories with varying inventory levels, totaling 12 million types. Using the figure generated by CCI as a benchmark, the carrier and insured can then determine what peculiarities of the business may result in a different coverage amount than its peers, Spencer says.
All the information gathered through the telephone estimating service and processed is archived at Marshall & Swift. The Valuation Data Warehouse is updated quarterly, so the stored information can be used to update policy values at any time in the future.
As a result of the 250-account study, Chubb was able ""to convince our insureds to accept significant premium increases on both buildings and contents,"" Spencer says. The carrier went live on its @Chubb extranet with a Web-enabled version of Commercial Estimator on January 15. It has also followed up with a second survey involving 750 additional accounts. The purpose of the second study was two-fold. ""One purpose was simply to help us get better values on an additional 750 accounts,"" Spencer says. ""The other was to make the case within the organization that we should, in fact, license and acquire the Commercial Contents Inventory software."" The carrier is currently studying running CCI on @Chubb, as well.
""Ultimately what we're going to do is link Commercial Estimator and CCI to our rating and policy issuance systems, so that valuation becomes a piece of information that's brought to the underwriter at the time it's important-when the policy is being issued,"" according to Spencer.
Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio
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