GUIDEWIRE Predict Software User Guide
- June 12, 2024
- GUIDEWIRE
Table of Contents
Predict Software
User Guide
Predict Software
Guidewire Predict
Mountain West Farm Bureau Mutual Insurance Company Improves Auto Underwriting
Profitability.
Mountain West Farm Bureau
Mutual Insurance Company
Mountain West **Farm Bureau Mutual Insurance Company
Headquarters Laramie, WY
Operations
United States
Business Lines
Multi-line insurance company
Website
www.mwfbic.com
Product(s)**
Guidewire Insurance Suite
Guidewire Predict for Profitability Guidewire Business
Intelligence for Insurance Suite Guidewire Enterprise Engage
The Mountain West Farm Bureau Mutual Insurance Company (MWFBMIC) was created
by the Wyoming Farm Bureau in 1948. It partnered with the Montana Farm Bureau
in 1958. MWFBMIC is a multi-line insurance company, serving the needs of
individuals, families, and businesses throughout Wyoming and Montana for over
70 years. The company’s mission is to provide financial peace of mind for
their customers with competitive, quality products and services.
MWFBMIC is the only domesticated P&C insurance writer in Wyoming and is also
the largest writer of Farm & Ranch in Wyoming and Montana.
Business Problem
Around the year 2012 MWFBMIC was facing some pricing irregularities in their
auto book of business. As a result, some bad risks were being underwritten and
the overall risk distribution was not what they wanted.
MWFBMIC’s journey with Guidewire Predict* began in 2013. The company started
by developing a loss-ratio scoring model for the auto line of business to
uncover all the risk factors.
Solution
The scoring model uncovered a specific issue with driver assignment as the
root cause for underwriting bad risks. The company did not accurately capture
whow as driving which vehicle on the policy. For example, on a family-based
policy with multiple vehicles, the risk characteristics differ based on who in
the family is driving which vehicle.
- Formerly Guidewire Predictive Analytics
Benefits
- Accurate rates with identification of proper driver assignments
- Behavioral changes in agent and underwriting methods
- Approximately 20% growth in written premium in four years
“Guidewire Predict has helped us improve the profitability of our auto book of
business. The accompanying behavioral changes have resulted in 20% growth in
written premium over four years.”
—Daniel Sorensen
Actuarial Analyst II, MWFBMIC
This led to a change in the agent behavior and the underwriting methods. The
company now started asking detailed questions to accurately capture who is
driving which vehicle. The loss-ratio scoring model was implemented and rolled
out in 2014. The company closely monitors the model performance using Predict
and makes adjustments as necessary.
Results
The scoring model has resulted in a significant shift in the risk distribution
within a matter of a few years as seen in the Figure 1. The majority of the
risks underwritten in 2018 are in the higher (more profitable) scoring range
compared to 2013, which was prior to deploying Predict. The overall auto loss
ratio has stayed relatively flat, but the company has experienced
approximately 20% growth in written premium in these four years.
MWFBMIC is planning to roll out a major update to the scoring model in early
2020. It also plans to leverage Predict for its property line of business.
Guidewire is the platform P &C insurers trust to engage, innovate, and grow
efficiently. We combine digital, core, analytics, and machine learning to
deliver our platform as a cloud service.
More than 500 insurers, from new ventures to the largest and most complex
in the world, run on Guidewire. For more information, contact us
atinfo@guidewire.com .
© 2023 Guidewire Software, Inc. For more information about Guidewire
trademarks, visit http://guidewire.com/legal-notices. Document published:
2023-02-21 CS_Guidewire_Predict_Mountain_West_Farm_Bureau_EN_0223
References
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