Insurance and AI
Today’s insurance companies are embracing AI and predictive analytics to improve profitability, become more efficient and, ultimately, create a better customer experience.
Obviously AI provides insurers with incredible power to optimize their market selection, underwriting, pricing, and claims management. Using Obviously AI, insurers can run predictive analytics in under 30 seconds, providing for vastly greater speed to market, more accurate pricing, reduced loss ratios, and higher conversion rates.
Below are some of the key use cases of Obviously AI’s predictive analytics in the Insurance industry.
1. Dynamic Pricing
Using Obviously AI, a large B2B insurance provider in the US predicted how many employees of a company are likely to go on a high deductible plan. They then priced their offering accordingly, this meant smaller businesses were able to get affordable pricing quickly.
2. Reduce Churn
Insurers lose money when good customers don’t renew, as expired policies need to be replaced with more costly new business. Using Obviously AI, a large US insurer incorporated the risk of “churn” into its renewal pricing, leading to reductions in cancellations and non-renewals, an improved loss ratio, and a 25% cut in variable costs.
3. Mitigating Litigation Risk
Using Obviously AI, a large insurer developed a report for predicting the likelihood that a workers’ compensation claim would lead to litigation. Claims with probability of litigation were referred to senior staff for early and attractive settlement offers. This saved the company 8% of the litigations they would face otherwise and $3 million annually.
4. Fraud Detection
Using Obviously AI, a large insurer developed a report for predicting the likelihood that a claim is fraud. The report now updates automatically as new claims come in, and ones with high probability of fraud are reported to senior staff.
5. Finding Subrogation Opportunities
Subrogation opportunities can add high value if identified fast and acted upon. A large car insurance company in the US used Obviously AI to identify claims with a high probability for subrogation recovery. Claims handlers now receive automated lists of claims with subrogation. This is expected to double the company’s subrogation rate by end of year.
Why Obviously AI?
Obviously AI enables every business user at your organization to become a data scientist and run multiple predictions experiments in real time. While alternatives can be costly and extremely time consuming (~weeks OR months), Obviously AI delivers machine learning models in less than 1 minute. We strive to ensure that both you and your customers, win.
- Incredible speed: While alternatives can painstakingly take weeks or months to build an ML model, Obviously AI delivers predictions in less than 1 minute.
- Built for Business Users: Most ML tools can be daunting to look at as they are heavily tailored for expert engineers. Obviously AI is designed for Non-Technical user looking to not only build ML predictions but also take business action.
- Self learning: Predictions made using Obviously AI auto update as new data flows in, allowing them to self-learn in real time based on feedback from the real world. Allowing your predictions to get better over time.
“We were crazy impressed and realized we could do everything we wanted far easier without learning R or writing code.”
- Dan Parry, Tectonic London
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