The purpose of the portfolio value optimisation is:

• To get clear insight and understanding into the low & high risks within your portfolio.
• Where these risks are?
• Where the premium is sufficient and where not?
• Which customers are valuable and which are not?

This is achieved by comparing data from the policy and claims administration with data from external sources and compiled profiles. For all of the screened policies an overview is given of the relation between the Friss risk score and the premium/loss ratio. The risks and profiles give an indication of the items that have a positive or negative contribution to the claims amount. By shifting the threshold you are able to distinguish the bad from the good risks. This enables you to optimize your portfolio value. With several clients we have shown that claims loss can be reduced with several percent depending on thresholds used.

You can choose from over 200 different measurements depending on the product and external sources. Per Risk the impact on the premium/loss ratio will be mapped. For example, what is the impact of these risks on your portfolio?:

• The regular driver lives at a different address then the policyholder
• Uninsured periods prior to the close of the insurance

The portfolio value analysis can be used once or periodically. The results provides insight into risk mitigation measures and provides input for product innovations.