Algorithmic Underwriting in Specialty Insurance: An implementation guide in six case studies
We now have genuinely digital businesses owned by incumbents. After several false dawns there are some early movers that have built commercial and speciality algorithmic businesses and across the whole value chain.
Our report has been designed to provide insight on how to implement algorithmic decision-making in the underwriting and broking processes and how to evolve it over time.
We have based this on the combined experiences of four case studies from early implementers of algorithms for commercial and specialty insurance – Ki Syndicate, Vave, Rethink and Chaucer with Artificial – together with the observations of two leading suppliers of administration software – Guidewire and Verisk Specialty Business Solutions.
Introduction from Robin Merttens, Partner at InsTech London
It has long been our belief that transforming the entirety of a 20 plus year-old legacy technology stack into a shiny new digital business is too complex, expensive and time-consuming for most insurers. By and large, history has proved this thesis to be right.
We are seeing for the first time in these case studies of early implementers of algorithmic underwriting that things are changing. We are seeing incumbent insurance players giving birth to their own Insurtech start-ups.
The four case studies and the observations of two leading software establish beyond any doubt that we now have the technology to run an algorithmic insurance business in commercial and specialty, but that is not all you need.
This report aims to provide insight into what it takes to get started, how to implement algorithmic decision making and how to evolve it over time and how adoption changes the way that businesses operate.
Live Chat: Algorithmic Underwriting in Specialty Insurance: An Implementation Guide
Robin hosted a Live Chat with Marek Shafer, Managing Director of Vave, and Dan Prince CEO of Rethink Underwriting on Tuesday 15 March to discuss the findings from the report. It’s now available to watch again on the InsTech London BrightTALK channel.
The panel examined the key themes that emerge from case studies provided by Vave, Ki Syndicate, Rethink, Verisk Specialty Business Solutions, Guidewire and Artificial Labs/Chaucer.
Topics discussed included project initiation, build or buy, how to achieve data mastery, the war for relevant talent, how the role of the broker changes in an algorithmic world, and what lies ahead.