Protection specialist Best Insurance has launched an innovative new AI-driven underwriting solution set to revolutionise the Accident, Sickness, and Unemployment (ASU) market.
Incomeadora, supported by Collinson Insurance, is a brand-new quote-and-buy platform for ASU policies that uses advanced AI and behavioural technology for more accurate and fairer pricing. The launch follows a decade-long investigation by Best Insurance to determine why long-established underwriting methods were often resulting in poor outcomes for customers.
ASU pricing has traditionally been determined by age and excess periods, however, Best Insurance’s analysis discovered that these factors are not strongly correlated to the propensity and the duration of a claim. By leveraging large-scale data analysis of claims data and cancellation patterns and employing cutting-edge Large Language Models (LLMs), Best Insurance identified key behavioural factors that better predict claim propensity and duration.
Then, using detailed regression and correlation models, Best Insurance was able to develop Incomeadora – one of the first AI-driven pricing models for ASU.
As the underwriting is based on core factors relevant to unemployment, this innovative new approach allows for precise, one-to-one pricing, protecting insurers from anti-selection and eliminating the age discrimination that is so prevalent in the protection sector.
With every new policy sold and every new claim that comes in, the platform’s AI technology and machine learning will refine the model even further, making it increasingly more accurate.
Kesh Thukaram, co-founder of Best Insurance, says: “Incomeadora is truly a game-changer, as we are no longer using proxy underwriting and instead, addressing the root cause of anti-selection.
“The adage that “older people are high risk when it comes to unemployment claims” is a myth and I am really pleased that age is no longer a rating factor.
“Rather than bracketing people in largely historical-driven claims patterns, which are no longer relevant in today’s modern world, our approach promises to provide real value for money for our customers and hopefully make it more affordable for a wide range of customers.”
Simon Jones, Head of Multi-Lines Insurance at Collinson says: “The spirit and approach of Best Insurance with Incomeadora are completely aligned with our goal to launch innovative products offering real value to our customers. We wanted to embrace the benefits of AI and ML technologies to refine our approach to pricing to better balance performance and genuine customer value.”
Be the first to comment