Overland Solutions, Inc., a supplier of premium audit and underwriting exposure verification (UEV) services, and Valen Technologies, a supplier of predictive analytics to the property/casualty insurance market, announced a partnership designed to combat the premium leakage problem for workers' compensation and general liability insurers.

The combined services of Overland and Valen will identify premium leakage resulting from misclassified workers' compensation and general liability policies. RateRight, Valen's predictive analytics product, is designed to identify policies at high risk of misrepresented payroll. Used in combination with Overland's UEV services, the expected exposures can be validated and rectified. Insurers will have the ability to provide higher quality service, manage their risks, identify fraudulent activities, and collect unpaid premium.

"Based on an analysis of five million premium audit results, an estimated 45 percent of workers' compensation and general liability policies have some form of misclassification," says Dan Bankson, senior vice president of analytics at Valen. "The estimated leakage is about 4 percent or approximately $3 billion dollars annually which needs to be absorbed by the insurance industry."

"We are very excited about the Valen partnership as we believe it will provide a natural expansion of the products and services that Overland provides to its client base," says David Robinson CIO at Overland Solutions. "We are also optimistic that RateRight is only the first offering that this partnership will bring to the insurance market place."

For more on how insurers are using predictive analytics, click here.