One of the largest insurers automates segmentation, while continuously improving their profitability on a home insurance product line.
8 previously unidentified high-value clusters were discovered
6% of the portfolio was found to be severely underpriced
48% of the portfolio was found to be significantly overpriced
10 points improvement in loss ratio after implementation
Despite having an accomplished data science team, the underwriting models faced limitations in providing accurate risk predictions, especially in a post-COVID world of changing markets, where new behavioral trends are emerging. The client used the Klary AI platform to uncover hidden risk patterns and improve underwriting accuracy.
The Klary platform was deployed without any integration or system changes, to process the client's historical home insurance data within just two hours. This demonstrated a key advantage of Klary's proprietary micro segmentation algorithms.
Our Python SDK is available for data science teams for easy use.
| Risk Group | Before Klary | After Klary | ||
|---|---|---|---|---|
| Exposure | Claim % | Exposure | Claim % | |
| High | 20,246 | 8.63% | 40,475 (X2) | 8.37% |
| Mild | 244,066 | 3.96% | 65,003 (X0.27) | 4.26% |
| Low | 60,644 | 3.05% | 219,478 (X3.5) | 3.24% (+0.19%) |
| Portfolio | 324,956 | 4.08% | 324,956 | 4.08% |
"The Klary platform gave us visibility into hidden risk segments that we simply couldn't detect with existing models."Head of Property and Casualty
The data science team promptly integrated the findings into the company's underwriting engine on top of their existing risk model.
The Klary platform transforms underwriting with unmatched accuracy and speed, detecting hidden risk patterns at a microsegment level as soon as they emerge. Without infrastructure changes, data science teams gain human-readable rules that drive higher profitability and help to build a native Python data science workflow. The platform empowers underwriters and data scientists alike to make faster, smarter, and more confident decisions.
Klary was nominated for an important competition where it won a national award for "Revolutionizing Analytics with AI"