A top UK automobile insurance company sought the help of FlatworldEdge to improve their KPI performance during their digital transformation. The client was facing challenges with underperforming KPIs and was struggling to make real-time pricing decisions.
FlatworldEdge's AI solution was brought into the picture to enable swifter data-driven decisions. This not only improved the client's operational efficiency but also enhanced their customer engagement significantly.
Story of the Customer
The customer is a leading automobile insurance company in the United Kingdom. They utilize data extensively for risk calculations and determining product pricing. However, they were grappling with challenges related to enhancing their Key Performance Indicators (KPIs) and making real-time pricing decisions, which was impeding their operational efficiency.
In search of a solution, the client approached FlatworldEdge for assistance with automated KPI tracking, smart pricing, and the ability to perform what-if analyses. The aim was to streamline their decision-making process, improve customer engagement, and ensure more informed and timely decision making.
- The client was struggling with poor performance of key KPIs including the Combined Operating Ratio, Estimated Loss Ratio, Conversion Ratio, and Claims Frequency, possibly leading to operational inefficiencies and financial losses.
- The insurance company was unable to make real-time pricing decisions, likely affecting their competitive edge in the dynamic and fast-paced insurance market.
- The insurer was unable to assess the impact of underwriting decisions in a timely manner, having to wait 4-6 weeks for analysis results, thus potentially resulting in missed opportunities or sustained underperformance.
- An AI software was developed to automatically identify and track Key Performance Indicators (KPIs), enhancing real-time decision-making and reducing the decision-making time by 70%.
- The solution provided semi-automated pricing decisions, using AI and Machine Learning Technologies to calculate risk and forecast product pricing accurately, thereby enhancing customer engagement.
- The system performs real-time what-if analysis using various combinations of influencers, allowing the company to simulate different scenarios and understand their potential impact instantly.
- The AI-driven solution led to 70% quicker and real-time decision-making, drastically reducing the time required to assess the impact of underwriting decisions from 4-6 weeks to real-time.
- Enhanced business intelligence was achieved through the ability to simulate various scenarios and their impact, enabling data-informed decisions based on historical KPI trends.
- The intelligent pricing assistant improved customer engagement by offering more accurate and timely insurance product pricing, thereby increasing the company's operation efficiency.