1This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Carlos Albo (WEA)
Configurable and PersonalizedInsurance Products
2This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Cluster#5 Pilots[P#13] Alternative & automated insurance risk selection for SMEs [WEA]
Capture from open sources nontraditional data from SMEs to automate risk rating and insurance product recommendation
Exploit AI technologies to create SMEs risk profiles and automate underwriting processes S M E ’ s
A G R I C U L T U R E
Open Data
Weather Data
Risk Selecction
Automate Processes
[P#14] Big Data & IoT for Agricultural Insurance Industry [AGRO]
Enable insurance companies to exploit the untapped market potential ofAgricultural Insurance (AgI), taking advantage of innovations in EarthObservation (EO), weather intelligence & ICT technology
Big Data / ML&AI / IoT
3This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
P#13 – Alternative & automated insurance risk selection for SMEs
• Business: Automate insurance risk and underwriting processes and personalized product recommendation
• Technical: Flexible data acquisition, use of AI /ML and performing Big Data in low latency management and high flexible connectivity
P#14 – Big Data & IoT for the Agricultural Insurance Industry
• Business: Reduce weather prediction uncertainty, reduce number of presence visits reducing cost and obtain more accurate contracts
• Technical: using HPC infrastructure to better weather prediction, modular architecture to deploy faster solution and blockchain to deploy smart contracs
Highlights - Innovation
4This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Pilot #13Alternative and automated insurance risk selection and
insurance product recommendation for SME’s
Carlos Albo, [email protected] WENALYZE
5This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Problem
UP to 70 percent of the critical data insurers collect from
enterprises customers is wrong. This problem adds manual tasks whileignoring customers real risks.
Financial corporations use outdated internal information that has been gathered by agents and brokers or by using specific data sources.
Insurers often have manual checking tasks on their underwriting and renewal processes to minimize this problem, using lower quality of data and slowing their decisions.
6This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
How it works Pilot #13
Enriched Data +
Build Risk Indicators
Financial Entity / Bank
API
Web Application
Public Registers
Customer Reviews
Business Websites
Other Sources
PILOT #13 - Alternative and automated insurance risk selection and insurance product recommendation for SME’s
7This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Pilot #13 - Workflow 4 Steps
Data is captured 50 data points per secondare matched from hundreds of data sources
1
2
3
4
Insurer sends data including customer business Name and Postal Code
Data is automatically analyzed, compared, updated, verified and enriched
Data is delivered back to the insurer with seamless integration
10This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Pilot#13– Business Innovation
Fast Quoting
Risk Mapping
Data Quality Increase
Adding Risk Indicators to Increase Pricing Models Accuracy
Updating, Completing and Verifying Current Data
Automating Underwriting and Renewals Processes
11This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Pilot#13– KPI’s
Fast Quoting60-100%
Risk Mapping12 indicators
Data Quality Increase80-90%
Adding Risk Indicators to Increase Pricing Models Accuracy
Updating, Completing and Verifying Current Data
Automating Underwriting and Renewals Processes
12This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Pilot #14Big Data & IoT for the Agricultural Insurance Industry
Gregory Mygdakos , [email protected] AgroApps PC.
13This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
The problem
Estimating Risk-premiums based on historical-past calamities data.
• historic records are sometimes absent or not sufficiently accurate• high variability of extreme weather events* causes uncertainty of future Risk
Estimation of the damage at the insured parcel by on spot visits
• increases operational costs (22-24% of premiums value**)• insurance agents are less objective and less “independent” leading to biased
assessments & higher costs
On spot visits to check compliance • increased operational costs & are not efficient!
*Top risk in likelihood and impact in The World Economic Forum Global Risk Report for 2018, 2017, 2016.**U.S. Department of Agriculture, Risk Management Agency. Crop Indemnities Maps, 2016
14This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Big Data & IoT for the Agricultural Insurance Industry
Delivers INFINITECH AgI module, a commercial service module that will enable insurance companies to exploit theuntapped market potential of Agricultural Insurance (AgI), taking advantage of innovations in Earth Observation (EO),weather intelligence & ICT technology
Infinitech AgI module supports:
Intelligent risk assessment and
risk mappingInsurance Product development
Weather and climate
information services
Remote damage
assessment
Business Intelligence for
portfolio management
15This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Pilot #14 - WorkflowData integrator
● AOI & Metadata● WIE Products● Octopush Products
Insurance companyServicesData sources
● User interface● Visualized data● Thematic maps
Crop Monitoring
Pest & Disease Services
Damage Assessment Services
Octopush EOService
Weather Forecast Services
Climate Services
Weather Intel.Engine (WIE)
17This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Pilot 14 – Business Innovation
Intelligent risk assessment& risk mapping
Business Intelligence for portfolio management
Weather and climate information services
Remote damageassessment
Crop Monitoring
Pest & Disease Services
Damage Assessment Services
Octopush EOService
Weather Forecast Services
Climate Services
Weather Intel.Engine (WIE)
Insurance Productdevelopment
Infinitech AgI module will:
1. Allow AgI companies to
alleviate the effect of weather
uncertainty when estimating
risk of AgIproducts,
2. Reduce the number of on-site
visits for claim verification,
reduce operational and
administrative costs for
monitoring of insured indexes
and contract handling, and
3. Design more accurate and
personalized contracts.
18This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Pilot #14 – KPI’s
Key Performance Indicators (KPIs) & Target values
% increase in accuracy of risk assessment (average): 35%
% decrease in operational costs (average): 25%
AgI Process cycle-time decrease (%): 60%
% of automation workflow achieved on AgI company level: 90%
% of automation workflow achieved on AgI supply chain level: 80%
19This project has received funding from the European Union’s horizon 2020 research and innovation programme under grant agreement no 856632
Flagship initiative for Big Data in Finance and Insurance
Carlos Albo (WEA)
Thanks for your attention
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