XL Catlin’s internal innovation team, Accelerate, announced it is working with Cytora, a UK-based insurtech startup that uses artificial intelligence (AI) and open source data to improve the way insurers quantify, select and price risk.
In today’s competitive insurance environment, launching niche products into attractive micro-segments, where loss probability is low and the appetite for coverage is high, can provide significant opportunities for growth.
Underwriters often receive incomplete submissions, making it difficult for them to make confident, efficient pricing decisions. External data and machine learning offer insurers a significant opportunity to optimise their underwriting function, and drive down loss and expense ratios.
The success of the insurer/broker relationship relies on the precision of the alignment between the insurer’s risk appetite and broker submissions. To optimise this relationship, insurers and brokers must share an exhaustive view of the risk niches they are operating in.
The key barrier to offering meaningful limits and affordable pricing for products such as cyber is a lack of historical data. However, insurers are increasingly recognising that the past is no longer necessarily an accurate proxy for future claims experience.
Identifying the most attractive segments in a market requires an exhaustive view of the entire insurable population at the resolution of each insurable risk. A comparison between population performance vs. portfolio performance enables a cycle of continual optimisation
"I'm delighted to be working with Cytora. They have a fantastic technology and approach to building their business. It's a great opportunity to be working with a talented team as they look to disrupt the insurance market."
Ted will play a key role in advancing Cytora's approach to understanding commercial risk by leveraging unstructured web data, along with fellow University of Cambridge Professor Bill Byrne, who also joined the company recently.