Premium Leakage/ Premium Recapture (White Paper)

 One of the greatest challenges facing the property and casualty insurance industry today is under-billed / unbilled premium, also known as premium leakage. The industry conservatively estimates that this is a ninety-five billion dollar ($95 billion) problem that represents more than fifteen percent (15%) of total net written premium1. Forty-two percent (42%), or forty billion dollars ($40B), is attributable to personal lines auto. Another sixteen percent (16%), or fifteen billion dollars ($15B), is attributable to personal lines property. The remaining forty-two percent (42%), another forty billion dollars ($40B), contributed to the “soft” component of fraud in the form of purposeful misrepresentation of rating characteristics2. 

As unbelievable as these statistics are, through our exhaustive studies and analytics, Confianza can corroborate these statistics and undeniably conclude that these numbers do, in fact, represent conservative measures. 

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