Objective
To predict insurance premiums for each customer based on historical claims data, leveraging AI and data analytics to develop efficient pricing strategies.
Challenges
- Multiple Data Repositories: Different teams managing analytics functions led to inconsistencies and inefficiencies.
- Data Quality and Visibility Issues: Fragmented data sources and lack of control impacted reliability.
- Inconsistent Claims Data: Variability in claims distribution complicated premium prediction models.
- Legacy Systems: Lack of integration and consistent customer claims information models hindered automation.
- New Market Risks: Growing consumer volatility and emerging risks increased pricing challenges.
Solution
Leveraging DigiXT’s Big Data Management and AI capabilities to implement AI-driven premium prediction models.
- Unified Data Platform: Integrated internal and third-party systems into a single platform, eliminating silos.
- Low-Code Platform: Provided an interactive, no-code environment for exploratory data analysis.
- Advanced Modeling Techniques: Utilized Generalized Linear Mixed Models (GLMM) for accurate risk-based premium
- Interactive Dashboards: Equipped claims teams with tools for model comparison and real-time analytics, ensuring better decision-making.
Impact
The AI-powered insurance pricing solution delivered measurable improvements in several key areas:
- Revenue Increase: AI-driven pricing models improved revenue by ensuring more precise risk-based premium adjustments.
- Claim Analysis Enhancement: Real-time insights enabled proactive decision-making and improved claims management.
- Improved Data Governance: A centralized, structured data approach ensured accuracy and transparency in claims assessment.
- Operational Efficiency: Automation reduced manual efforts, accelerating premium calculation and policy adjustments.
Key Takeaways
- AI-Driven Premium Optimization: Improved risk assessment and pricing accuracy.
- Proactive Decision-Making: Real-time analytics empowered stakeholders with dynamic insights.
- Scalability & Future-Readiness: A robust, adaptable platform prepared for evolving market demands.
Conclusion
SAAL’s data-driven insurance pricing solution transforms traditional risk assessment models, aligning advanced technology with industry needs. By enhancing data governance, streamlining analytics, and leveraging AI for precision pricing, the solution empowers insurers to optimize revenue, reduce operational inefficiencies, and stay competitive in an evolving financial landscape.