"Rather than bracketing people in largely historical-driven claims patterns, which are no longer relevant in today’s modern world, our approach promises to provide real value, hopefully making it more affordable for a wide range of customers."
- Kesh Thukaram, Co-Founder of Best Insurance
Traditionally, Accident, Sickness & Unemployment (ASU) pricing has been determined by age and excess periods, however Best Insurance has found that these factors aren’t strongly correlated. By leveraging large-scale data analysis of claims data & cancellation patterns and employing Large Language Models (LLMs), Best Insurance identified key behavioural factors that better predict claim propensity and duration.
Then, using detailed regression and correlation models, Best Insurance was able to develop Incomeadora which the insurer has described as the first AI-driven pricing model for ASU policies. Supported by Collinson Insurance, this platform uses advanced AI and behavioural technology for more accurate and fairer pricing.
Since the underwriting is based on core factors relevant to unemployment, this approach allows for precise, one-to-one pricing, protecting insurers from anti-selection and eliminating age discrimination.
With every new policy sold, the platform’s AI technology and machine learning will refine the model, making it increasingly more accurate.
“Incomeadora is truly a game-changer, as we’re no longer using proxy underwriting and instead, addressing the root cause of anti-selection. The adage that ‘older people are high risk when it comes to unemployment claims’ is a myth and I’m really pleased that age is no longer a rating factor,” explained Kesh Thukaram, Co-Founder of Best Insurance.
He said: “Rather than bracketing people in largely historical-driven claims patterns, which are no longer relevant in today’s modern world, our approach promises to provide real value for money for our customers and hopefully make it more affordable for a wide range of customers.”
Simon Jones, Head of Multi-Lines Insurance at Collinson, added that the spirit and approach of Best Insurance with Incomeadora are “completely aligned with our goal to launch innovative products offering real value to our customers.”
“We wanted to embrace the benefits of AI and ML technologies to refine our approach to pricing to better balance performance and genuine customer value,” he concluded.
