Bad Risks or Bad Rates? Exploring the Use of AI Machine Learning in Underwriting

Have you been told by your actuarial team that there are no bad risks, just bad rates? Underwriters know that this isn’t always the case. Some risks are better than the numbers tell us, and others are just not worth writing. Modern rating plans do a pretty good job of handling differences in driver demographics and environmental considerations, but they can fall short in accounting for today’s advanced vehicle technology. The automobile landscape is changing at a breakneck pace, but actuarial pricing relies on historical experience, and it just can’t keep up.

It is more important than ever to adapt your underwriting and rating to meet these changes. We will show you how to use artificial intelligence and machine learning tools to turn complex vehicle build data into actionable insights you can use in underwriting to build a profitable and stable book of business – without waiting for the actuaries.