The way that risk is assessed and insurance is priced has long been a mystery – a secret that insurers hide from customers inside a black box. Go to any comparison site and you will see that the prices of “comparable” products can often vary by hundreds of pounds with little justification or explanation.
Shining a light on pricing approaches within insurance is difficult. Each insurer has teams of actuaries whose job it is to tune, tweak and carefully guard rating models which are considered valuable proprietary IP.
At Wrisk, we take an altogether different approach…
Our Wrisk Score lets us be completely transparent with our rating and the way we price.
A higher score means lower risk and better premiums. At anytime, you can tap on your Wrisk Score to understand the different factors that contribute towards it.
We do this because we actively want to share insights around how and why we make pricing decisions with our customers.
There are a number of reasons for this:
- We don’t expect you to trust our rating/pricing based on blind faith. We want to provide customers with a better understanding of the perils they face and the steps they can take to reduce their risk (and price). Apart from providing a service to help you recover if something bad happens – we hope that insight from our Wrisk Score might help prevent the disaster occurring in the first place.
- By opening up our models to public scrutiny, we are less likely to create an opaque “weapon of math destruction”. If we help customers understand our model, they can be empowered to challenge it. This helps us continuously improve and refine our rating approach.
- Having a transparent rating approach helps us steer clear of pricing approaches used by some in the wider insurance industry which… well… just don’t smell right to us. We think insurance pricing should be based on risk – not whether you can afford to pay more… Incumbents have been known to increase prices if you happen to be browsing for a quote on an expensive laptop from a leafy suburb… For us – if we can’t justify it to a customer, transparently through our Wrisk Score – we just won’t do it.
At Wrisk – we know we won’t have got everything perfect but we are setup to continuously improve. Before long we expect to not only have an experience that delights and is trusted by customers – but one that leads the way in terms of predictive pricing of risk.