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Driving Innovation in Insurance: Insights by Lumnion

29.5.2024

Driving Innovation in Insurance: Insights by Lumnion

The insurance industry is undergoingtransformational change, driven by technological advances and evolving customerexpectations. As insurers strive to remain competitive, innovation has become akey differentiator.

Driving Innovation in Insurance: Insights byLumnion

The insurance industry is undergoingtransformational change, driven by technological advances and evolving customerexpectations. As insurers strive to remain competitive, innovation has become akey differentiator.

The industry relies on large-scale data analysisfor risk management and modeling. AI contributes to the operation of insurancecompanies in many aspects, from risk assessment to detecting problems. Lumnionhelps insurers gain a vision to meet customer expectations and overcomeemerging challenges in the ever-evolving competitive environment within thescope of cutting-edge insurancetechnology.

Exploring the Latest Trends in InsuranceInnovation

Innovation in the insurance sector is beingpropelled by several emerging trends. AI falls under the latest trends ininsurance innovation. In particular, by improving various aspects of thepricing process, it has revolutionized insurance pricing. Artificialintelligence allows insurers to improve risk assessment, underwriting processesand customer service through predictive analytics and automated processes, andpersonalize pricing based on individual risk profiles. Insurers can save timeand reduce costs by using AI. It can also offer innovative insurance products to its customers.

Transforming Insurance Services with Next-GenTechnology Solution

Artificial intelligence technologies such asmachine learning, natural language processing, and computer visionare being leveraged in various aspects of the insurance value chain,from product development and pricing to claims processing and fraud detection.

With the development of next-gen insuranceservices, there have been significant developments in the sector.

In insurance, the old way of pricing is manuallypreparing the data – a time consuming activity that can take months, using onlyGLM for risk modeling.  Time to market ofany price change is also problematic as mostly it needs manual intervention,sometimes even requiring hard coded changes in the core systems. On top ofthat, many companies also lack the data and knowledge to move into behavioralpricing from only risk-based pricing.

Creating Value Through Innovative InsuranceProduct Development

The insurance industry examines data analyticsto make informed conclusions regarding risk management and pricing. Withsignificant advances in AI and ML technologies, it is now possible to accesspowerful tools that can automate data preparation, optimize pricingcapabilities, and manage risks. Developing innovative insurance products andcreating value is easier with the ML module!

The Future of Insurance: Embracing Innovation

An innovative insurance approach is a privilegethat will always keep you ahead of your competitors. Lumnion has a team ofexperts from software development, ML Algorithms and modelling     , and the insurance industry. This team ensures maximum efficiencyfrom the platform by providing guidance and support to insurance companies.

With the use of Artificial Intelligence andMachine Learning, Lumnion provides a unique end to end platform that canconnect to any core system, automating data preparation, with more precise riskpricing, impact analysis and dynamic pricing. Lumnion’s open platform allowsthe use of all the widely accepted ML Algorithms including XG Boost, RandomForest, Decision Tree, as well as GLM and GAM for risk modelling. In theplatform, Lumnion allows actuaries to model risk in all algorithms and comparethem side by side with the same data set. Moreover, Lumnion has also developedits own methodology to make results of any of these the black box machinelearning algorithms transparent, so that they become operationally usable.

 

If you don’t want to settle for GLM, Lumnion’splatform will provide an ideal solution for you. Contact Lumnion to see how theplatform can help your business gain a competitive advantage in the insuranceindustry.

 

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