Driving Actuarial Innovation with Better Partnerships
At The Floow, we have identified four key areas of actuarial innovation which allow us to provide a great service to our clients and give them a competitive advantage in their market. These are:
- Better Scores
- Better Insights
- Better Partnerships
- Better Outcomes
So far, we have looked at Better Scores and the core set of contextual and behavioural FloowScores which sit right at the heart of our products and have allowed us to develop a scoring platform proven to challenge the traditional proxy-based model for assessing risk in an insurance policy.
We’ve also covered Better Insights and how our highly predictive scores help our clients to truly understand the driving behaviours of their policyholders. These can provide the foundation of attractive retention pricing strategies as well as engagement approaches, such as using rewards programmes and driver coaching to help drivers improve their behaviour behind the wheel.
This time, we are going to look at the next key area of actuarial innovation, Better Partnerships, and how partnering closely with our clients delivers strong benefits and allows insurers to achieve market differentiation.
At The Floow, we believe that long-term and highly invested relationships deliver the best partnership with our clients. Our longest standing client has been with us from the very beginning, which has allowed them to benefit from the opportunity to train their scores against their claims data, to develop a new set of unique scores upon the solid baseline of our core scoring platform.
This approach has also been replicated for our more recent clients, providing them with the opportunity to work closely with us to deliver something that’s truly unique to their business.
Once an insurer’s scores have been trained against their claims data, the resulting scores become their IP - an approach we consider to be unique in the market and critical to our clients’ development of true differentiation.
In today’s ever-changing insurance world, we know that it is extremely important for insurers to stay ahead of the curve, deliver great customer experiences and work with partners who are committed to helping them succeed. This is why the use of telematics is increasingly important as it enables insurers to create more genuinely competitive and insight-driven risk models.
Therefore when selecting a telematics service provider, it is important to consider how commercial benefit will be driven and market edge gained over your competitors by using the insights from telematics scores to drive pricing models and commercial decisions.
Insurers can achieve this in two ways: knowing things your competitors don’t and being better at doing what you do. Collaborative working between The Floow and our clients, and training our scores against their claims data to create unique scoring IP, leverages both of these so clients can gain that competitive advantage.
We recognise the fact that telematics scores are a core part of our clients' organisation. They are as important as their own risk models and should therefore be owned and fully understood by them; rather than them just receiving a ‘black-box’ score.
When client actuaries and underwriters work with us to further train scores against their own claims data, they have reported a significant boost of up to three times the profitability per telematics customer versus their traditional policy types, and a set of scores that represent powerful and unique IP.
The opportunity to train scores against claims data to develop unique scoring IP provides our clients with the opportunity to gain competitive and market advantage by using their unique insights into driver behaviour to drive pricing models and commercial decisions. We believe that this unique approach is what makes us a great partner for insurers looking to implement telematics into their insurance propositions.
In our next instalment, we look at how telematics can provide better outcomes for your business including tackling fraudulent claims.
To read more about our approach to scoring, check out our latest issue of Driven magazine which features a further article on this topic. To find out more about our scoring and the benefits you could achieve by creating your own scoring IP, get in touch or request a demo at firstname.lastname@example.org