Oakland Insurance Working With MLP on Richer Data

Tech is really transforming insurance and one of the areas where there are big gans for insurers is pricing. Assessing the true risk means more than just analysing historical claims, it means tracking asset values in real time, monitoring driver behaviour, or layering credit check, company director databases into Commercial Lines etc. AI and automated systems can really bring those strands of data together in a way that is meaningful and very useful in understanding risk.

Here’s the latest from Oakland Insurance, who have announced a strategic partnership with Machine Learning Programs (MLP), to implement predictive AI enrichment model, MLP Score;

MLP Score is the most recent addition to a growing portfolio from MLP, which is part of the Open GI Group. The partnership signifying the next phase in a strengthening relationship with the Northern Ireland broker, which is part of the Provincewide group of insurance brokers, and already a client of Open GI.

Aimed specifically at the motor market MLP Score is designed to give insurers, MGAs and delegated authority underwriters the ability to predict an insurance risk’s propensity to claim within the next 12 months.

POINT OF QUOTE

Available at point of quote, the service returns an “MLP Score” on a risk-by-risk basis via its pre-trained production model that is constantly retrained with the latest market data. It ensures that the broadest, most up to date and relevant market insights are provided which, in turn, give the ability to price a policy with confidence by having a proven and effective means of assessing risk. This ultimately ensures that customers receive a fair price for their cover.

Paul Matthews, CEO OF Oakland Insurance, which offers insurance across a range of sectors from vehicle and travel to property and commercial to the NI market, says: ‘We are delighted to be partnering with MLP. A deciding factor for us proved to be the retro facility the MLP team offered us initially. It involved conducting a retrospective analysis against two-years of our historic data and known outcomes and running it through the MLP Score model.

“This process demonstrated to us firsthand how it could improve our loss ratios and ultimately translate into a significant cost saving on claims for the business. There is no doubt that the additional enrichment and insight will be crucial for us moving forward, so we can continue to price fairly, accurately and profitably.”

Damian Baxter, Chief Executive Officer, MLP comments: “There has been a definite acceleration in the awareness of AI and machine learning across the wider GI industry, but the way companies embrace the role each play is still in its infancy, so it’s been fantastic to see how quickly Oakland have gone from the initial retro in November to penning the deal in January to go-live five days later.

“This is a real testament to not only the Oakland team’s forward-thinking approach, but the sophisticated functionality and versatility of Open GI’s technology platforms and the un-matched quality of our data science. We’re off to a great start and I can’t wait to see this partnership go from strength to strength.”

Since it was founded in 2018, the MLP team has created, built and launched a series of pioneering price, claim and fraud models that are changing the way insurers, brokers and MGAs assess risk and improve loss ratios.