Why Pinnacle Is the Firm of Choice for Predictive Modeling

Predictive Modeling Experience - Our consultants were among the first to provide predictive modeling service to the property and casualty insurance industry, and have completed or are in the process of completing over 35 predictive modeling projects for insurers over the past six years, including projects for both large (4 of the top 10 property and casualty insurance companies) and small insurers. These projects have varied substantially; and have included developing and reviewing pricing models and rating relativities, analyzing current and proposed tiering plans, developing underwriting scorecards, integrating new rating factors into existing class and tiering plans, analyzing homeowner rating plans by peril, developing custom credit based insurance score models, defining territories through the use of clustering and spatial smoothing techniques, implementing commercially available credit based insurance scores into existing rating and underwriting plans, and agency management.

Insurance Industry Experience - Our strengths in the development of rating and tiering plans include the experience that we have in the property and casualty insurance market. Combined, our consultants have over 100 years of experience in rate and class plan analysis of personal and commercial lines of insurance, and therefore we have keen insight that can help make sense of models. This insight is invaluable when attempting to implement the results of a predictive model. Pinnacle does not just deliver a final plan, but has the expertise in the marketplace to assist in implementation of the results effectively.

We have assisted our clients not only in the development of rating and tiering models, but also in developing the filings to seek regulatory approval for these plans. We have also assisted clients with securing approval of filings which included sophisticated rating and tiering plans in stringent regulatory environments such as Washington, California and Michigan.

Knowledge Transfer - Pinnacle places a great emphasis on knowledge transfer and on helping our customers understand the process. Our modeling tools are flexible and quick enough that we have been able to bring our computers to clients’ offices and perform modeling applications in real time. This allows our clients to understand the process used to develop the models and gives the client the option of being self-sufficient in the future.