Insurance carriers face constant challenges in an ever-changing market, with pressure to deliver on both price and customer experience while maintaining profitability. In a time of economic uncertainty and growing risks, the ability to accurately assess risks and project losses can create a competitive advantage. Access to greater knowledge during the underwriting and claims processes enables more precise pricing, thereby enhancing profitability for the carrier.
The Insurtech Vanguards program is a Guidewire initiative to help unlock new technologies for insurers. The program exposes these new technologies and enables insurers to scout next generation innovation to stay ahead of the competition. The program incubates 50 companies each year with the goal of helping develop their technology into a cloud integration for the Guidewire Marketplace. Below are examples of current Insurtech Vanguard members who are changing the game for insurers.
Leveraging AI and Predictive Analytics to Enable Underwriting/ Pricing Accuracy
Leveraging AI and predictive analytics in the risk assessment process enables carriers to better identify the risks to avoid and to price these risks more accurately. Predictive analytics pairs statistical modeling with AI to support underwriting decisions, enabling carriers to be more accurate on pricing. Gradient AI, a Guidewire Insurtech Vanguard member, is one example of an insurtech leveraging data to help carriers optimize their ability to assess and predict risk. The company leverages industry data to provide risk rating and loss projection capabilities for multiple lines of business. Gradient AI’s automation capabilities enable straight-through-processing for routine underwriting decisions, assessing new and renewal applications in real time.
Capabilities from Hosta A.I. who use artificial intelligence to automate remote indoor property assessments from just a few photos taken by the homeowner, automatically creating 1, 2 and 3-dimensional measurements, floor plans, and itemized lists of materials of the homeowner's space.
Whenever a home needs to be sold, reinsured, refinanced, remodeled, or repaired, insurers and banks are required to dispatch a contractor or adjuster to evaluate the structure and document the conditions and associated risks in each area. These in-person property assessments cost time and money for both the homeowner and the construction company. It’s as simple as taking a few photos of the site and uploading them into Hosta’s patent-pending A.I. Assessment Platform which analyzes the photos of each room and automatically creates a detailed assessment. All objects and materials used within a space will be automatically identified, counted, and classified, resulting in a detailed bill of materials with options of integrating APIs for quotes, estimates, and shopping carts.
Use of Analytics and AI to Predict/ Mitigate Losses and Improve Claims Efficiency
AI and predictive analytics provide benefits for multiple claims functions as well. The ability to analyze data to make real-time decisions creates efficiencies, mitigates losses and improves the overall claims operations. Insurtechs are finding ways to leverage data to determine claims risk, predict outcomes and manage key pieces of the claims process. For example, Gradient AI provides claims solutions that enable risk analysis, predictive analytics and automation. Gradient AI enables AI and predictive analytics capabilities for segmenting claims at FNOL, ranking claims risk, predicting attorney involvement, predicting litigation severity, predicting losses, identifying subrogation opportunities and more.
Charlee.ai, another Guidewire Vanguard member, is an insurtech in the AI and predictive analytics space for claims. Charlee’s solutions enable enhanced litigation management, severity management and claims portfolio. Their litigation management solution leverages past data to support decision making, one example being identifying attorney patterns. The severity management solution assesses demographics, claims behavior and predicts future patterns to help determine potential claim severity. The claims portfolio solution helps provide a holistic view, including insights into key metrics across the claims portfolio.
Forming Strategic Partnerships to Accelerate Profitable Growth
To help insurers leverage these new analytics and AI platforms and successfully grow their businesses profitably, Guidewire continues to invest in strategic partnerships with analytics and artificial intelligence companies in its Insurtech Vanguard and PartnerConnect programs. In October, a new slate of Vanguards will showcase their latest technology at the 2023 Vanguard Pitch Day event in Las Vegas. PwC is thrilled to once again host this event with Guidewire to bring new technology to P&C customers. Be sure to visit the Vanguard Pitch Day website to check out the five finalists who will be putting their best pitches forward at the event.
Guidewire’s partnership with the insurtech community helps pave the way for seamless integrations to the Guidewire Cloud Platform, making it easier for insurers to more quickly leverage the power of analytics and AI and improve the overall effectiveness of their underwriting and claims functions.