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First SaaS-based predictive platform for life insurers

Singapore

TEL Aviv-based insurtech company Atidot has launched the first SaaS-based (software as a service-based) predictive analytics platform for life insurers, where it can clean and sort data, as well as generate real time premium rates based on the information gathered.

The Israeli firm taps Big Data modelling and decision making tools to help life insurers make decisions, such as policy pricing that complies with regulation, efficiently. It also means insurers do not have to rely on their legacy systems or traditional analytic methods, which are more time-consuming.

Speaking to The Business Times, Atidot CEO Dror Katzav explained what the cloud-based platform does is to collect data from all sources. Insurers can securely load company data to the proprietary platform, which also gathers external data through the Internet of Things (IoT).

"Although data is stored in operational systems, in a messy way, Atidot is able to collect this data and automatically carry out the cleansing, analysis and insurance understanding in order to build a unified view of the customer," Mr Katzav said.

The system, using artificial intelligence and machine learning, then runs all the different models to predict answers to the questions insurers want asked.

For example, the system can create profile groupings of policyholders by analysing an unlimited number of categories such as their age, occupation, gender, payment method, average salary for their geographic location, among others.

Said Mr Katzav: "This profiling gives the client an insight into the predicted behaviour of their policyholders and the client can then adjust their strategy accordingly, whether this is upselling to more receptive clients or client retention efforts to those deemed at risk of lapsing."

If an insurer changes its decision, the policy changes too, he said, adding that what insurers now struggle with is "the measuring of all data points".

Citing the example of a client who took almost a year to sort out and analyse its policyholders' data using traditional methods, Mr Katzav said Atidot's platform takes less than an hour to load and analyse one million policies.

The firm was founded in 2016 by Mr Katzav and Barak Bercovitz, both of whom served in the technological unit of the Intelligence Corps in the Israeli Army, as well as Assaf Mizan, a former chief actuary at the Israel Ministry of Finance. It has raised capital from The DE Shaw Group and other fintech venture capitalists.

Already in use by two life insurers, Atidot has been launched in the United States and also operates in the United Kingdom and South Africa, with plans to set foot in Asia, given that "the eastern market is of high interest".