If you have been on social media recently, you are probably aware of the ChatGPT AI platform released last fall that everyone is currently discussing. If not, here is a brief description to get you up to speed:
Using AI, Users can ask a “bot” questions about almost anything with this tool. For example, ChatGPT can explain quantum physics or write a poem on command.
While this somewhat new product just went viral with its latest release, AI has been transforming processes for years in different sectors. At Groundspeed, our AI has been a game-changer in the insurance world since 2016, helping commercial insurance carriers increase their quote-to-bind ratio, decrease loss ratio, and lower operating expenses, all while fostering new product growth.
This blog will explore the ways Groundspeed’s AI has helped over 30 middle to large-marketing commercial insurance carriers.
1. Increase Quote-to-bind ratio
Typically the fastest carrier to quote a business wins the business. That is why you must have the quickest quote response times and better submission prioritization. But we know that for complex business submissions, it sometimes takes underwriters days to manually sort through all the submission documents and note critical data fields needed to underwrite. This process is manual, time-consuming, and costly.
To accelerate this process, Groundspeed’s AI will give you a near-perfect and structured risk picture in typically under two hours, saving your underwriters days of data entry work. Which in return will allow them to quote profitable new business faster.
2. Decrease Operating Expenses
Over half of every premium dollar collected is spent on expenses associated with writing business, both renewals and new. In addition, the cost to acquire data from each submission ranges from $85 to $100, which is a cost that only represents access to some of the necessary data points. And then, is it accurate?
Oftentimes, carriers are forced to make the tradeoff of using minimal information to clear a submission and quote new business based on relationship and instinct.
With Groundspeed’s AI, you can automate your data ingestion process, improve the accuracy of data, and increase efficiency for your underwriting team. With this technology in place, now your underwriting team will spend the time they would typically spend on data entry, reviewing structured submission data, and quoting the target accounts that match your risk appetite.
3. Decrease Loss Ratio
The loss ratio is a critical metric for insurance companies. Groundspeed Analytics uses AI-powered predictive models to analyze historical claims data and identify patterns that indicate potential losses.
Not only is the structured data delivered to carriers fast, but it is accurate. Our AI maintains a 98% data point accuracy score with our quality assurance process. To ensure accurate data, the AI flags lower confidence values and loops in a Groundspeed team member to confirm accuracy. Then, after human review, enriched data from our machine-learning models and third-party sources are fused into the data set. This way, you can trust that your data will return to you in better and near-perfect form.
By analyzing historical claims data and providing near-perfect data, underwriters can make more informed decisions, reducing the likelihood of insuring high-risk clients and ultimately lowering the loss ratio.
4. Increase New Product Growth
In an increasingly competitive market, carriers must differentiate by offering innovative products and services. Groundspeed empowers carriers to develop new insurance products by providing them with actionable insights derived from large volumes of data. With a better understanding of their clients’ needs, carriers can design customized policies and create new revenue streams. This helps them to stay ahead of the competition and achieve long-term growth.
Transforming Commercial Insurance for the Future
The commercial insurance industry has always grappled with the challenge of managing complex data sets, high operating expenses, and finding the right balance between risk and profit. Groundspeed is transforming the commercial insurance industry by harnessing the power of AI and advanced data analytics to help solve those problems. By enabling carriers to increase their quote-to-bind ratio, decrease the loss ratio, reduce operating expenses, and foster new product growth, Groundspeed is paving the way for a more efficient and profitable future. As the insurtech landscape continues to evolve, insurance carriers that embrace these technologies will be well-positioned to thrive in the ever-changing market.
If these results are goals for your business, we would be delighted to discuss how Groundspeed can partner with you to transform your underwriting process. Schedule a call today with a Groundspeed specialist to learn more about our Human-in-the-loop AI.