Azur, a managing digital agent (MDA) has formed a partnership with Logical Glue to improve risk analysis for underwriters.
Logical Glue, which builds explainable AI (XAI) and machine learning tools for businesses, will deploy its algorithms to improve risk analysis which will help to streamline processes. Underwriters will be able to free up time for more complex risks and broker relationships.
By working together, Azur will now be able to put data at the centre of its underwriting, powering real-time pricing and risk management. All data is stored in one core system which the Logical Glue XAI solution will have access to.
The platform is API-based which allows the solution to integrate directly with Azur. This means, when a quote is requested, the client data collected by the broker will be combined with other factors outside of rating and feeds this into the algorithms. Two scored are made, one showing the likelihood to convert and the second is on the propensity to claim.
An option is also available, which will let the underwriter access the logic and find out how the information and differing characteristics impacted the scores.
Azur chief data officer Lara Kor, said, “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.”
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