FirstBest, Valen joint venture aims to enhance accuracy of underwriting

LEXINGTON, Mass.--Underwriting management systems provider FirstBest Systems Inc. has entered a strategic technology alliance with Valen Technologies, a Denver-based firm specializing in predictive analytics for the insurance industry.

Through the arrangement, the companies say, commercial property/casualty insurers will be able to use Lexington, Mass.-based FirstBest's underwriting management system in a production environment that integrates real-time operational data with Valen's industry-focused predictive analytics, giving underwriters the ability to price more accurately.

FirstBest provides insurers with an integrated system that delivers straight-through processing, exception-based underwriting, real-time collaboration, knowledge management and an execution platform for predictive modeling.

Valen's system produces a predictive model using a company's historical claims data in conjunction with derived data and data from Valen's External Data Warehouse. The output is a "risk score" that can be used for pricing, loss prevention and straight-through processing.