How NIG is using data to improve their risk pricing and underwriting decisions


Authored by NIG

We’ve been refining and enhancing our approach to data and analytics to improve our risk pricing and underwriting decisions.

What has changed?

Using data providers to enrich each quote: While a lot of the decisions we make are still driven by the information provided through our risk capture, we are now using data providers to enrich each quote with information about policyholders, companies and addresses. This allows us to provide a price and decision which is far more tailored to the customer. 

For example, automated lookups at point of quote, can uncover credit impairment which may not have been disclosed.  We can then work with our partners to help clarify this information, ensuring clients’ circumstances are fully understood at inception, rather than claim stage.

Introducing address-level pricing: We’ve also done a lot of work behind the scenes, to help us better understand our performance and how-to better price risk.  We have automated far more geographic factors into our address rating, using our premises data to help provide a price which is unique to the risk.  Previously, most of our geographic factors were summarised at postcode level. This means we can ensure we are confident with the risk being placed, with less need for underwriter postcode checks and manual referrals.

What’s the benefit?

These changes mean we can automate more and bigger risks than ever before, reducing the time taken to get risks on cover and ensuring pricing is more accurate – leading to better profitability for brokers. Having enhanced validation at underwriting stage also helps to avoid delays in claims.

What’s next?

Moving forward, we plan to develop tools to improve quote journey speed and execution through fewer questions and more intelligent data-driven solutions. Watch this space.

To find out more about our digital capabilities and how they could benefit you, speak to your usual NIG contact.


About NIG

We’ve been experts in commercial insurance for 125 years.

The National Insurance and Guarantee Corporation (NIG) is a broker only insurer; we believe in getting to know both the brokers we work with and their clients’ businesses, building trusted partnerships that last for the long-term. Our highly experienced underwriting team are focused on working with brokers to identify and understand the risks faced by UK enterprises. Together, with our risk control experts and risk management tools we develop solutions to help UK enterprises reduce and mitigate key exposures. We offer a wide range of products with flexibility to create tailored insurance cover and when clients need us, claims are dealt with quickly and fairly through a proactive claims approach.

Our trading model has been designed to reflect the differing requirements of how brokers like to trade, with regional offices, National Trading Centre, National Schemes Centre, eTrade Centre of Excellence and dedicated experts for specialist sectors.

We’re investing in new technology to make us even easier to trade with. We’re launching an online risk management resource supported by our in-house Risk Control Team and introduced online claims submissions to speed up the claims process, minimising disruption to clients’ businesses. We are also the only insurer two years running with a five-star rating for both TheHub and Software Houses, in the Insurance Times 2019 and 2020 eTrade survey.

We are dedicated to making UK enterprises more resilient.

NIG is a wholly owned subsidiary of Direct Line Insurance Group plc, providing stability and financial strength. Our policies are underwritten by U K Insurance Limited.

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