Valen Technologies, a supplier of predictive analytics, and Overland Solutions, a supplier of premium audit and underwriting exposure verification (UEV) services, have entered into a partnership to combat 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, the company’s new 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.
Dan Bankson, SVP of Analytics at Valen Technologies, said: “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. The estimated leakage is about 4% or approximately $3bn annually which needs to be absorbed by the insurance industry.”
David Robinson CIO of Overland Solutions, said: “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. We are also optimistic that RateRight is only the first offering that this partnership will bring to the insurance market place.”