Managing Digital Agent Azur announced that it will partner with Logical Glue in order to create and implement algorithms to improve risk analysis. This will in turn allow underwriters to focus on advanced risks and broker relationships.
Lara Korz, Chief Data Officer of Azur, says: “With the availability of ever more data and unlimited access to computing power via the cloud, XAI is going to become an even bigger a factor in the risk transfer process. It has taken some time for the insurance industry to enter the digital world, but technology is now influencing every aspect of this sector and will increasingly be used to create policies that are tailor-made for individual risks. Augmented underwriting gives firms the opportunity to make better decisions by comparing both assumptions and explanations. It was fantastic to work with Logical Glue to achieve this vision.”
The insurance industry has a reputation for inefficiency, largely through human error, as well as owning large bodies of data, but not fully utilising it. The partnership between Azur and Logical Glue will allow the implementation of this underwriting solution which centres around data, allowing for real-time pricing and risk management. Data will be stored in a core system, and then enriched by XAI at the back end to enable straight through processing and a better user experience.
Once a quote is requested, the client’s data is collected by the broker and measured against other variables, and fed into three algorithms. From this comes two scores: The likelihood to convert and the other on the propensity to claim. This has its obvious benefits as it retains the human understanding offered by the broker, and the algorithm removes any cognitive bias.
Greg Healey, COO at Logical Glue comments: “It has been a rewarding experience to implement our machine learning system into Azur’s legacy portfolio. We firmly believe in Azur’s vision to streamline the insurance process for brokers and clients, and this new system will allow them to make better decisions in a shorter amount of time, with less hassle for all parties involved.
We’ll continue to consult and work closely with Azur to make sure the machine learning system is implemented fully and properly. Embracing digitisation in insurance is the only way to reduce the inefficiencies the sector has long been known for.”