Underwriting is a process of making decision based on statistics, but there is always a human opinion in place. People tend to be cautious and avoid harsh decisions. Meanwhile we know that companies even of the same industry have different usage of medical coverage based on many factors including office locations, transport used, clinic specifics etc.
Thus, we have a solution which helps Insurers to make better and weighted decisions to get higher profit margin on the medical insurance proucts
Modeling and testing
Payouts forecasting modeling and comparison to factual data
Steps 1-3, Inflation Forecast, Consumption, Seasonality, etc. Base Price Calculation
Preparing 250+ features to be used in models
Adding 20+ factors to increase precision of UW calculations
Over 15 factors to structure and validate data for further processing
Via API or other means, rolling out tested models. Deploying the Model Retraining Algorythms
Statistics show that the scatter of predicted decisions relative to the median is smaller for the underwriter, i.e. a person acts “according to the average,” trying not to make decisions that are close to the extreme.