Bacca Risk Index (BRI) is an insurance risk index for vehicle insurance created by Bacca and based on the objective assessment of the Client’s financial responsibility.
The frequency of vehicle insurance claims is higher in the case of Clients, who do not fulfil their financial obligations on time and have negative payment history, than in the case of persons with positive payment history. The correlation of credit risk with insurance risk is a confirmed occurence both Poland and abroad. In Poland we have unique experience, legal preparation and technical backup for the optimal use, in terms of a sales process, of payment information about the Client in civil liability insurance quotations.
A civil liability insurance for motor vehicle owners is a product subject to strong price competition and, as a result, Insurers find it difficult to maintain the profitability of this business line.
BRI is calculated based on multiple sources that are useful in the credit assessment of any Client and is expressed as a value from 1 to 100. Providing BRI to the Insurer in this form, we facilitate its application in bonus malus calculation. Applying BRI, the Insurer may individualise the credit assessment of the Client’s risk and effectively identify Clients of the highest claim risk. BRI helps diversify an insurance price based on accurate, multiannual data about the Client and, among a group of similar drivers, indicate those who carry higher or lower risk of causing an accident. BRI is objective and cannot be modified or misrepresented in the process of applying for insurance protection.
As part of its insurance premium financing services, Bacca has developed mechanisms to monitor the credit risk of insurance clients. Since we use a wide spectrum of commercial information about the Client, the Insurer may obtain detailed information and individual index correlated with the actual loss ratio of the Insurance Company.
We have also implemented the authorisation to verify payment history by a return SMS message and we may provide a separate service of collecting authorisations to verify commercial information.
Benefits for the Insurer from the application of BRI
- Bacca collects Clients’ authorisations and submits verification enquiries to external databases
- Bacca closely monitors the Client’s consent authorisation and bears liability for that
Instalments constitute a good reason for obtaining r the Client’s consent to undergo credit scoring verification
Using Bacca to build the value of any client database
- Correct contact details build the value of the Insurer’s client database and allow for lowering operational costs
- We have been cooperating with Agents for years and we understand their needs and worries
- By offering monthly premiums, we have taught Agents that we require correct contact details of the Clients (telephone number and e-mail address) and that we use those details only for the purpose of payment handling
Convenient way of obtaining Client’s consent
- All verifications are conducted with the Client’s consent
- Two methods of obtaining Client’s consent: in an electronic form (SMS message with return confirmation message) in paper form (scanned to an electronic form)
- We work on more advanced methods
- We manage the risk of malpractice by Agents in terms of confirming authorisations of the Clients without having obtained their actual consent