Fair, Isaac Product Helps Insurance Marketers Target Promos

Insurance marketers in the U.S. can now target their auto and homeowner promotions to reach those consumers most likely to become profitable by using TargetScore, a new predictive scoring tool offered by Fair, Isaac and Company, Inc. and its DynaMark data services subsidiary.

The new TargetScore product, which is designed specifically for the personal lines insurance industry, helps insurers to segment their prospect lists for more profitable customer acquisition and cross selling. It provides a marketing score for each consumer on a company's campaign lists based on an extensive body of demographic data, which is applied to the lists by DynaMark and analyzed using industry-specific scoring models developed by Fair, Isaac. The score segments returned by DynaMark help marketers to predict with greater confidence which prospects will be the best performers in terms of both risk and retention.

TargetScore is offered in versions tailored to the marketing requirements of both personal lines auto and homeowner insurance. It permits marketers to target consumers based on two key indicators of policyholder performance—their predicted loss ratio and likelihood of retention. Using these scores, insurers can identify and target those prospects with the highest potential lifetime value. They also can structure their offers to appropriately match products and pricing with each prospect's anticipated level of profitability.

Insurance companies that use TargetScore stand to benefit from reduced marketing and underwriting costs, as well as from more profitable new business, the company claims. According to Wendell Larson, director of marketing, insurance unit, for Fair, Isaac, "Our TargetScore offering introduces a new degree of precision to insurance marketing campaigns that helps insurers to reduce costs while improving the overall success of their marketing programs. By permitting more targeted solicitations, it serves to lower marketing expenses as well as minimize underwriting losses. In addition, insurers who use TargetScore stand to improve underwriting productivity by lowering the number of applicant declinations and cancellations that they handle."