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Insurance Risk

In the field of insurance, fortuity is a fundamental principal that is required for the contract to exist. The presence of fortuity means that the precise outcome of a scenario must be unforeseen, unknown or impossible to predict. In these situations we either rely on statistical probability or on the judgement of experienced individuals to make the best possible decision. 

 

Faced with a fortuitous scenario, insurance experts use a combination of facts (explicit information), experience and intuition (tacit variables), to formulate a response or decision. 

 

Merlynn’s TOM (Tacit Object Modeler) technology is unique in its ability to virtualise this tacit knowledge and experience, in so doing the model is able to respond just as the expert would to a given scenario, rendering it perfectly suited to model insurance expertise.

 

TOM technology does not rely on historical data to model expertise, so it is particularly useful in areas of insurance where extensive data may not exist, in evolving risk landscapes, and where experience or expertise is limited to very few individuals.

 

In the Insurance Sector we are busy with projects in the following areas:

 

  • Underwriting 

  • Surveying

  • Sales

  • Claims (Fraud detection and monitoring)

 

           

Underwriting

Insurance risk assessment is primarily the role of the underwriter, and until now it has not been possible to automate these decisions. 

This is because:

  • complex risk analysis by its very nature it is not exact science, 

  • many queries directed to underwriters require attention to a unique and specific set of facts,

  • there may be little historical data to draw on as certain events occur too randomly or infrequently, to create a data set which is large enough to be statistically analysed, 

  • the nature of the risk may be dynamic and evolving as business, regulation, technology or weather patterns shift the goal posts, rendering historical data obsolete or irrelevant, but mainly 

  • the tacit knowledge (years of experience) harboured in the subconscious of the expert underwriter has been impossible to replicate… until now

 

Underwriting Capacity Constraints - How do you create efficiencies without compromising the quality of the underwriting?

 

Underwriting expertise is specialised by nature, resources are scarce, training takes time, and gut instinct takes years to develop.

The optimisation conundrum… today’s fast paced business environment demands speed and quick turnaround time which often compromises the extent and quality of the risk assessment, this compromise could be extremely costly down the line both in premium revenue, missed risk factors and ultimately claims

 

TOM technology allows the digital version of your specialist underwriter to analyse your renewal book or new business request, consider all risk factors and respond within seconds 

without compromising the quality of the decision. 

Download Use Case