Gathering the Data One of the most important data elements is loss and pricing data, which can sometimes be elusive.


Once a program administrator has an idea and approaches a carrier, the carrier is focused on the underwriting profi tability. Richard Augustyn, NIP Group


Launching an insurance program can pose a dilemma: how can a program administrator underwrite a unique segment without readily available loss data for that specifi c segment?


Vincent Pugliese directs would-be program entrepreneurs to several sources of loss data, including:


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• • • •


Using experience data directly from the Insurance Services Offi ce, Inc. (ISO), assuming that information is available and tracked by segment;


Finding loss data for similar segments and using it to develop benchmarks;


Interviewing insurance veterans who are experienced with this segment;


Obtaining loss data from prior or current insurers for that segment;


Pulling together groups of agents and aggregating their collective loss data.


Richard Augustyn recommends hiring an actuarial service to analyze loss and pricing data. Even if it’s not directly on point, the resulting estimate can serve as a reasonable proxy.


Copyright © 2010 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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