Best Insurance launches AI-driven underwriting solution for ASU market

Protection specialist Best Insurance has introduced a revolutionary AI-driven underwriting solution called Incomeadora, aimed at transforming the Accident, Sickness, and Unemployment (ASU) market. Supported by Collinson Insurance, Incomeadora is a quote-and-buy platform that utilises advanced AI and behavioural technology to offer more accurate and fairer pricing for ASU policies.

Best Insurance spent a decade investigating the shortcomings of traditional underwriting methods, which often resulted in poor outcomes for customers. Their analysis revealed that factors like age and excess periods, typically used to determine ASU pricing, do not strongly correlate with the likelihood or duration of a claim.

By leveraging large-scale data analysis and cutting-edge Large Language Models (LLMs), Best Insurance identified key behavioural factors that better predict claim propensity and duration. Using detailed regression and correlation models, they developed Incomeadora, one of the first AI-driven pricing models for ASU.

This innovative approach focuses on core factors relevant to unemployment, allowing for precise, personalised pricing. It protects insurers from anti-selection and eliminates the prevalent age discrimination in the protection sector. The platform’s AI technology and machine learning capabilities will continuously refine the model with each new policy and claim, enhancing its accuracy over time.

Kesh Thukaram, co-founder of Best Insurance, said: “Incomeadora is truly a game-changer, as we are no longer using proxy underwriting and instead, addressing the root cause of anti-selection. The adage that ‘older people are high risk when it comes to unemployment claims’ is a myth and I am really pleased that age is no longer a rating factor. Our approach promises to provide real value for money for our customers and hopefully make it more affordable for a wide range of customers.”

Simon Jones, head of multi-lines insurance at Collinson, added: “The spirit and approach of Best Insurance with Incomeadora are completely aligned with our goal to launch innovative products offering real value to our customers. We wanted to embrace the benefits of AI and ML technologies to refine our approach to pricing to better balance performance and genuine customer value.”