Akur8 RISK

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Overview

Akur8, the AI Pricing solution, enables insurance carriers to improve their profits and win market share with pricing models created and updated in hours instead of months. Akur8 developed unique leading edge algorithms dedicated to insurance pricing. The disruptive technology developed by our R&D team allows to combine Machine Learning and Actuarial worlds.

GLM (Generalized Linear Model) is a well-established technique that answers all Risk Modeling constraints: it is easy to understand and it enables a clear validation process. But it is manual. Iterations and discoveries are long and slow, involving large number actuarial resources.

Using cutting edge machine learning, we have automated GLM modeling. From variable selection to geographic smoothing, you build your model keeping clarity while improving performance. You can immediately spot anomalies and discover new patterns. Building models with Akur8 is 10 times faster than with traditional solutions - with a better result.

Key Features

Akur8 solution covers the entire insurance pricing value chain, from risk modeling to consumer pricing, with a modular approach. Akur8 developed unique leading edge Machine Learning algorithms dedicated to insurance pricing that automate risk, demand and pricing modeling while ensuring transparency and control on the models, as required by insurance regulators worldwide. Akur8 is an accelerator of insurance pricing sophistication, allowing to build required models 10x faster than legacy solutions, while improving model performance (predictive power, measured by Gini Index), therefore improving loss ratio (-2-4%), processing more data (in types and volume) and enabling more efficient model governance and collaboration across business units.

Key Benefits

Akur8’s technological edge allows insurance carriers to improve their profits with models created and updated in hours instead of months. The disruptive technology developed by our R&D team allows to combine machine learning and actuarial worlds. Akur8 developed cutting edge algorithms - the Akur8 EngineTM - that allows to leverage AI/machine learning in insurance pricing while keeping the same transparency as manual GLMs.

Key Benefits:

- 10X faster modeling: Accelerate your pricing time to market

- up to 10% Gini improvement: Improve models’ performance

- 2-4% Loss Ratio reduction: Improve your profitability

Case Study

Insurer that is already sophisticated base their tariffs on the technical risk models, through price optimization.This insurer has the following challenges:

- Generation of accurate & reliable models

- Capability to update models on a very regular basis

- Include new variables in the tariff as fast as possible

- manage a very large number of models simultaneously

Impact of Akur8 implementation:

- Improve the modeling speed by a factor 10, achieving a previously 5 man-months task with 1 actuary in 2 weeks

- Increase the models quality (Gini) by up to 10% thanks to better variables selection and inclusion of new variables in the model

- Decrease the time to market, increase the modeling frequency & the number of models that can be included in a tariff

- Increase the reliability of the modeling process & decrease the risk of operational error; created clear documentation and validation process for the models created

Media

Brochures