London, Ocotober 9, 2024: Experian UK&I today announces a new AI-powered data solution ‘Hazard Tags’ which will help transform underwriting processes in the commercial insurance sector.
Manual underwriting methods can be time-consuming for insurers and can often lead to a lack of clarity over key questions that are pivotal for accurate risk rating and quote pricing, as businesses expand and change their operations over time to reflect market demand.
Now thanks to a new collaboration with business data aggregator Veridion, insurers and Managing General Agents (MGAs) will benefit from a significantly streamlined underwriting process - reducing the need for manual data gathering - and an improved claims processing and quotation journey.
By using advanced Artificial Intelligence and Machine Learning techniques to analyse billions of internet pages almost instantly, the solution identifies any changes to business activity, risk exposure, and products and services, enabling accurate premiums and coverage to be calculated.
Hazard Tags, which identifies risk keywords through the analysis, can be combined with industry classifications such as SIC, NACE, and NASIC, giving commercial insurers an enhanced, true profile of the business. It reduces the risk of misclassification within the insurer’s portfolio which can cause significant losses in revenue.
Recent analysis by Experian UK&I found that more than half of a large commercial insurer’s polices were misclassified by traditional classifications, costing the company an estimated £6bn in lost premiums.
David Gallihawk, Chief Product Officer, Business Information, Experian UK&I, said: “Artificial intelligence and machine learning is transforming the world of work in countless ways, and the financial services sector is no different.
“Traditional SIC codes may not accurately reflect mixed business operations, for example breweries that also function as bars and restaurants or construction firms that handle hazardous material like asbestos. That’s the issue that Hazard Tags solve.
“Increased automation means improved efficiency, and in the case of insurance, means more accurate up-to-date information so underwriters can get a comprehensive view of clients and price accordingly.”
Florin Tufan, co-founder and CEO of Veridion, said: “In partnership with Experian, Veridion leverages AI to build comprehensive business profiles, accurately identifying activities and exposures from a company's digital presence.
“This provides insurers with detailed insights for precise risk evaluation and informed decision-making.”
The launch of Hazard Tags builds on Experian UK&I’s Business Activity Tags and Business Descriptions classifications, which enable better, more accurate risk assessment and classifications of businesses.
ENDS
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics, and software. We also assist millions of people to realise their financial goals and help them to save time and money.
We operate across a range of markets, from financial services to healthcare, automotive, agribusiness, insurance, and many more industry segments.
We invested in talented people and new advanced technologies to unlock the power of data and innovate. As a FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 22,500 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.
About Veridion
Veridion is building a single source of truth for company data using advanced AI techniques to understand multiple data sources at scale. Veridion’s Database currently stands at 123M company profiles from all around the world, with over 80 data points from firmographic data, classifications to product level data, with over 700M products and services, all updated weekly.
We focus on powering mission-critical B2B operations with high-quality, constantly updated data.
Our products are used by some of the most sophisticated data teams in the world in multiple industries, like commercial insurance, management consulting, and commercial credit scoring.The use cases range from understanding the risk associated with specific business activities to discovering potential suppliers with complex contract manufacturing capabilities.
Veridion.com