With the release of Pinpoint Loss Predictions, Pinpoint is bringing the earliest, and the most accurate, profitability predictions to Property and Casualty insurers. This is the first commercial solution powered by deep-learning, built on trillions of behavioral data points, and includes predictions for claims frequency, severity, and loss cost.
By focusing the solution on the top-of-funnel, and prior to filed rating, underwriting, or any outcome determination, Pinpoint provides insurers with unprecedented flexibility in creating relevant customer journeys to better manage their book of business. The Pinpoint Loss Prediction solution joins Pinpoint’s Risk Scores, which insurers are using to predict an individual’s likelihood for litigation, SIU referral, early cancellation, or premium leakage. Both products are available for risk selection at top-of-funnel and pre-renewal.
While providing top-of-funnel predictions are key to prioritizing individuals who will have the most positive impact on loss ratios, Pinpoint Loss Predictions also offer unmatched accuracy. This accuracy enables insurers to more effectively manage the profitability of their book of business.
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When compared with baseline pricing models (shown in the yellow lines), Pinpoint Loss Predictions better concentrate higher and lower real-world loss ratios across percentile-based segments (shown in the green lines).
“One of our goals at Pinpoint is to keep insurance available and affordable. When we can help insurers prioritize those that fit within their existing profitability and risk appetite, both the insurer and their insured win,” explained Nicohle Schluender, Head of Marketing at Pinpoint Predictive.
In a recent video testimonial provided by TigerRisk, Bill O’Keefe, the Chief Strategy Officer, had this to say about Pinpoint: “We believe what Pinpoint brings to the table is truly unique and a distinct competitive advantage that can be offered to our clients. The ability to micro-segment clients and truly understand who the insured are at the very beginning of the funnel is extremely unique and something that can provide the competitive advantage our clients are looking for.”
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Pinpoint is currently working with home, auto, and small-business insurers to deploy data-driven, micro-segment strategies to unlock tens to hundreds of millions in yearly savings. Sample implementations include growth initiatives (e.g., lead scoring and prioritization, book-roll profitability analysis, and comp raters), customer journey orchestration based on micro-segmentation, and profitability-driven renewal strategies.
The Deep-Learning Differentiator
Pinpoint’s actuarial Loss Predictions are the first industry offering that leverages the power of deep-learning AI. Deep-learning is a subfield of AI that focuses on inferences that mimic the human brain to perform hugely complex analyses. “There was far too large a gap between the world’s best behavioral predictions and insurance loss estimates. We’ve closed this gap through innovations in AI, trillions of new data points, explainability via our first-party behavioral economics data, and large continuous investments in compliance and privacy,” says Avi Tuschman, Founder and CIO of Pinpoint Predictive.
Behavioral Economics
Rather than using more data on the object (the car, the house, the business) being insured, Pinpoint solutions are built using trillions of individual behavioral data points, curated specifically for the insurance industry through a custom supply-chain. By focusing on the individual, not the object, Pinpoint solutions use two orders of magnitude more data than existing predictive models. The underlying data does not include individual credit scores, zip code, language, or ethnicity. Nor does Pinpoint scrape data from the web or social media. These data points provide the foundation for behavioral fingerprints for over 260 million US adults, and fuel the deep-learning models that create the earliest and most accurate predictions for both profitability and loss, as well as risk.
Solving the Growth Paradox
Attaining healthy gains in direct premiums year over year, while avoiding downstream impact on loss ratio has been a difficult and elusive challenge for insurers. “Insurers accept risk onto the books, while at the same time reiterating the belief that ‘there is a rate for every risk’, because there is still a belief that risk is the price you pay for opportunity, or maybe more precisely – for growth,” says Scott Ham, Pinpoint Predictive CEO. “We do not believe in this false dichotomy. There is a path to profitable growth, but that path involves understanding individual-level risks much more accurately and earlier in the purchasing cycle, and that is exactly what our Loss Predictions provide to our clients.”
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