Contact: Mehmet Fatih Çoban
Country: Turkey
Award Category: Innovative Problem Solver
Tell us about the business problem you were trying to solve.
Neova’s main aim was to investigate how its risk is distributed among retail personal MOD portfolio. In order to grasp this risk distribution, a comprehensive risk modeling was crucial. By understanding the risk behavior, a fair & competitive tariff system could be established.
Using the latest technologies and advanced analytics techniques such as AI/ML, it was our ambition to be the pioneer in the market in terms of better pricing strategy, fast response to the market and being adaptive & innovative in new digital world.
Another major challenge of Neova, similar to other insurers in the market, was siloed legacy systems which is the most expensive operational model in terms of support, quality and productivity.
What SAS products did you use and how did you use them?
Neova solved the problem of identifying risk by using SAS Viya. Data was prepared and modelled in SAS Dynamic Actuarial Modeling. Machine learning methods were used in modeling phase to detect the risk distribution elaborately. After modeling part, system integration was completed between SAS Intelligent Decisioning and Neova’s core insurance system to establish an ML based dynamic pricing approach.
By implementing this integrated platform, it was our objective to have competitive advantage in the market to launch new and innovative products and shorten time-to-market.
What were the results or outcomes?
With this project, Neova targets to price its customers in a fair fashion and therefore grow its portfolio in a profitable way. Customer satisfaction could then be established and fast responses to their need could be possible. Apart from this, product management could be easily done thanks to the highly operative and integrated structure of SAS Viya. These benefits will result in lower combined ratio and higher renewal rates of customer.
Why is this approach innovative?
The project, among the first of its kind in the Turkish market, will use artificial intelligence in the form of advanced machine learning (ML) to optimize how it prices auto insurance. This advancement is projected to save Neova Sigorta’s customers money – and decrease overhead costs for the insurer.
Neova Sigorta truly understands the importance of AI and ML, and the company’s knowledge and vision put them ahead of many players in the market and in the underwriting field.
