data & analytics
The Science of Our Business
In the 1990s, German chemical company BASF ran an ad campaign called Making Everything Better. “We don’t make the cooler,” the company states or the jeans or the toys—or a whole list of other products. “We make the cooler cooler and the jeans bluer,” and so on. What they really meant is that they are the engine that makes these things better. This is what data science is at PURE.
Data science is behind nearly every aspect of our business, helping us make smarter decisions that result in better outcomes for everyone involved, from deciding who we accept into the membership to which claims adjuster gets assigned to each claim. All of these decisions are based on insights and information that we extract from data.
Here are some of the ways data is making us better:
The outcome of previous claims can predict—with a high degree of accuracy—the outcome of future claims in both severity and complexity. For example, looking at 10 years of internal claims data, we can predict the likely severity of a water damage claim based on information like the type of appliance that leaked, the floor on which the leak originated, the occupancy of the home in the moments before it occurred and dozens of other factors. This allows us to match the claim to an adjuster who has the right experience and seniority to expeditiously handle the claim.
Since PURE launched, our risk management team has conducted more than 60,000 PURE 360TM Risk Management Consultations. An important objective of these assessments is to identify and address risks that could lead to future claims. In analyzing the data captured during these inspections, we found patterns and gained clarity on the most common causes of loss, and we developed a better understanding of the likelihood of a loss based on the characteristics of a property. This allows us to give each member timely, more specific and more personalized advice, which we are delighted to see has resulted in more members implementing loss prevention solutions before a loss has occurred.
While our risk managers can identify homes that are too risky to insure, it’s often too late in the process, so we look to our underwriters to approve only those prospective members who have homes that are less likely to experience a claim. Fewer claims will help keep premiums low and build an even stronger company.
Our underwriters are experts in precisely evaluating risk factors and the implications of those risks on our business. They do this for each and every individual account that is submitted for consideration, and they rely on data tools to support their decisions. These tools compliantly take hundreds of data points into account—like coverage choices, the square footage of a home, mortgage information and the number of stories in a home—and understand how they work together to most accurately and confidently predict the likelihood of a future claim.