Underwriting with a NonClaim Lens: Signals that Predict Clean Risk
Every portfolio has gems: customers who rarely claim and stay for years. Finding more of them is an underwriting challenge with a brand consequence. A NonClaim lens means deliberately modeling for what doesn’t happen — incidents avoided — and pricing for the quiet majority.
Signals that Matter
- Stability: Address tenure, employment consistency, continuous coverage, payment reliability.
- Telematics & IoT: Smooth acceleration, night driving share, braking patterns, home sensor uptime.
- Maintenance behavior: Inspection records, service intervals, compliance with safety recalls.
- Contextual risk: Local loss history, catastrophe exposure, crime rates, contractor density.
Modeling Notes
Include absence features (e.g., periods without incidents) as first-class signals. Beware of proxies that introduce bias; validate across protected classes. Use monotonic constraints when needed to keep models aligned with actuarial intuition.
Pricing & Product
Reward clean risk with step-down deductibles, disappearing surcharges, or loyalty dividends. Bundle devices (dashcams, leak sensors) only if support is airtight — tech that fails can erode trust quickly.
Distribution
Give brokers a simple pitch: “NonClaim pricing — earn better terms by proving low risk.” Provide easy program collateral and a clear score display in portals.
Conclusion
Underwriting for “nothing happened” is still underwriting. With a NonClaim mindset, carriers can shift selection and pricing toward durable, low-loss books.
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