CARFAX and Pinnacle Actuarial Resources Unveil Vehicle Build Score
CENTREVILLE, Va. – CARFAX, a leader in vehicle history data, and Pinnacle Actuarial Resources, an actuarial consulting firm, have developed a new scoring system designed to transform how auto insurers assess risk. The CARFAX Vehicle Build Score utilizes the full 17-digit VIN to provide a more refined and accurate understanding of a vehicle’s unique characteristics, helping insurers determine appropriate pricing.
“The existing practice of utilizing symbols does not reflect an understanding of a specific vehicle’s bumper to bumper configuration,” said Don Hendriks, Director of Insurance Analytics at CARFAX.
The new score incorporates a proprietary vehicle valuation model to prevent both over- and under-pricing by providing precise current market values for each vehicle. Using advanced modeling techniques, CARFAX analyzes a vehicle’s loss experience at the component level. This eliminates the need for yearly updates and adjustments to existing symbol systems.
“For insurers, the Vehicle Build Score is an evolution towards a more advanced and refined approach to symbols and the rating process,” said Roosevelt Mosley, Pinnacle Managing Principal. “Our partnership with CARFAX allows us to translate detailed vehicle data into actionable risk assessments via a simple score, giving insurers a critical edge in underwriting and pricing.”
The CARFAX Vehicle Build Score is designed for both personal and commercial auto insurance markets. It offers detailed insights at the VIN level and is designed to integrate seamlessly into existing rating models. The score is currently being filed and approved by state regulators across the United States.
About CARFAX
CARFAX, a part of S&P Global Mobility, provides vehicle history information to help consumers and the automotive industry with confident shopping, buying, servicing and selling of used cars. CARFAX owns the world’s largest vehicle history database. The company is recognized as a top workplace by The Washington Post.
About Pinnacle
Pinnacle is an independent, full-service actuarial firm serving the property/casualty insurance industry. They are owned by their professional staff and are among the largest such firms in the United States.
