The IBM Insurtech report “Friend or Foe? Insurtechs and the global insurance industry” describes how insurers are engaging with insurtechs today. Some are displacing the incumbents, but many are collaborating to “drive new growth, promote efficiencies and accelerate innovation.” One of the collaboration themes is around how insurtechs help insurers deliver preventive advice and other risk management services to their clients. This is a core part of the Praedicat value to its insurer clients, which puts us firmly in the “friend” camp instead of the “foe” camp.
Praedicat has a latency risk management program that is intended to help our clients get maximum value from our products. It consists of four steps: 1.) a portfolio analysis to identify latency aggregation risks; 2.) a portfolio steering exercise, which generates underwriting strategies to manage risks; 3.) underwriting information available in the software to facilitate execution on underwriting strategies; and 4.) risk consulting support. We regard the fourth step, risk consulting support, as critical to the success of the program. In this step, we collaborate with our clients to repackage our data into something that underwriters can directly share with their clients. This turns out to be a huge feature of working with us for the insurers because they can deliver additional value to their clients, improving client retention, while at the same time reducing losses.
At a more general level, this is part of the vision for Praedicat. We know that there is immensely valuable information about risk that is buried in the text of science journals and therefore lost to insurers. Using data science, we extract this information and distill it into a form that insurers can use in their business. With Praedicat delivering science into the liability insurance market, insurers and their clients can reduce risk to their workers and the public. What a great outcome!
Eighty percent of insurtech leaders say that insurtech proliferation is accelerating an industry-wide shift of insurance toward preventive advice and other forms of risk management services.