Instec Builds Predictive Model for Insurers with Microsoft Machine Learning
NAPERVILLE, Ill. (PRWEB) November 29, 2018 -- Instec, the market leader in insurance software for commercial program and specialty writers, has created a predictive model that determines whether insurance policyholders are likely to renew. Built using Microsoft Azure Machine Learning, the model provides insurers with insights that can reduce churn.
The cost to replace a lost insurance customer is high. Some experts estimate it costs five times more to acquire a new customer than to retain an existing one. Not surprisingly, insurance companies would like to know which customers are on the verge of switching so they can take pre-emptive action.
Instec applied Microsoft Azure Machine Learning to build a model that predicts which insurance customers are likely to switch providers. It was constructed around a series of attributes Instec suspected were indicators of non-renewal. Drawing on decades of data, the company ran 65,000 policies through the model and compared its predictions to actual renewals to validate its accuracy.
“We collaborate with Microsoft across our entire technology stack,” said Kevin Mason, Instec Executive Vice President. “The speed with which we were able to spin up this proof of concept reflects the close relationship between our companies and the decades of insurance experience that Instec brings to the table.”
Instec suggests that insurers could use the predictive model to reduce customer churn. This could begin with a simple communication to determine issues that may lead the insured to shop for a new insurer. With that knowledge in hand, insurers could offer solutions to build loyalty. If insurers can prevent even a fraction of insureds from switching, the positive effect on expense ratios could be significant.
About Instec
Instec’s unique approach to systems for the insurance industry enables P&C carriers, MGAs and MGUs to launch programs and specialty offerings from start to first quote in as little as four weeks. With built-in bureau content and reusable business rules, Instec systems provide a platform for innovation with reduced risk. In addition, cloud-based deployment and subscription-based pricing enable insurers to test new programs at a low cost of entry and scale up affordably as the business grows. To learn more, visit instec-corp.com.
Michael Sauber, Instec, http://www.instec-corp.com/, 484-981-4944, [email protected]
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