The underwriting data waterfall: A new framework for insurance economics

Personal lines insurance carriers pay for data on every applicant who gets a quote. Most of those applicants never buy a policy. As shopping rates climb across Auto, Home, and Life, that cost is growing faster than premium written.

This technical brief lays out a different approach for Auto, Home, and Life carriers. Inside:

• Why pre-bind data costs are growing faster than premium, with research from J.D. Power, MIB Group, LIMRA, and DISA
• A four-layer framework that puts the cheapest checks first, so expensive ones only run when needed
• A new pricing model that charges only when a policy binds, not on every quote
• How the math changes across direct, agent, and aggregator channels