Experian Launches AI-Driven ‘Hazard Tags’ to Revolutionize Commercial Insurance Underwriting

Experian Launches AI-Driven ‘Hazard Tags’ to Revolutionize Commercial Insurance Underwriting

(IN BRIEF) Experian UK&I has launched an innovative AI-powered data solution called ‘Hazard Tags’ to improve the underwriting processes in the commercial insurance sector. This new tool, developed in collaboration with data aggregator Veridion, aims to eliminate the inefficiencies associated with traditional manual underwriting, which can often obscure vital details needed for accurate risk assessment and pricing. Hazard Tags utilizes advanced AI and Machine Learning to analyze billions of internet pages swiftly, allowing insurers to identify changes in business activities, risk exposures, and service offerings. The solution also incorporates industry classifications such as SIC, NACE, and NASIC, providing a clearer business profile that reduces misclassification risks. A recent analysis revealed that over half of policies were misclassified by traditional methods, leading to significant revenue losses. The introduction of Hazard Tags enhances risk assessment and streamlines the quotation process, ultimately enabling more precise premium calculations.

(PRESS RELEASE) LONDON, 9-Oct-2024 — /EuropaWire/ — Experian UK&I has introduced a groundbreaking data solution named ‘Hazard Tags,’ designed to revolutionize the underwriting processes within the commercial insurance industry. This innovative AI-powered tool aims to address the inefficiencies of traditional manual underwriting, which often leads to confusion over critical details necessary for precise risk assessment and pricing.

Through a strategic partnership with data aggregator Veridion, the new solution streamlines the underwriting process by minimizing the reliance on manual data collection, thereby enhancing claims processing and quotation procedures. Utilizing advanced Artificial Intelligence and Machine Learning, Hazard Tags analyzes billions of internet pages rapidly, detecting any alterations in business activities, risk exposure, and offered products or services, which facilitates accurate premium calculations.

The Hazard Tags feature identifies relevant risk keywords and integrates them with established industry classifications like SIC, NACE, and NASIC. This comprehensive profiling of businesses helps mitigate misclassification risks, a significant issue for insurers. A recent study conducted by Experian UK&I revealed that traditional classification methods misclassified over half of a major insurer’s policies, resulting in an estimated loss of £6 billion in premiums.

David Gallihawk, Chief Product Officer of Business Information at Experian UK&I, emphasized the transformative impact of AI and machine learning on the financial services landscape. He noted that traditional classifications often fail to capture the complexities of businesses with mixed operations, such as breweries that also serve as bars and restaurants, or construction firms dealing with hazardous materials. Hazard Tags addresses these challenges by providing underwriters with real-time, comprehensive data on clients for accurate pricing.

Florin Tufan, co-founder and CEO of Veridion, remarked on the collaboration with Experian, highlighting how the integration of AI allows for the creation of detailed business profiles. This provides insurers with essential insights for precise risk assessment and decision-making.

The launch of Hazard Tags complements Experian UK&I’s existing Business Activity Tags and Business Descriptions classifications, further refining the risk assessment process for commercial insurers.

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

Media Contact:

Gerry Tschopp
Head of Global External Communications
+1 714 830 7756
+1 949 677 3377
gerry.tschopp@experian.com

SOURCE: Experian