Next-gen Data Products for Insurance Industry

0
26
Max Drucker
Max Drucker, CEO

Carpe Data

 

“Insurance companies now have a powerful new source for answering existing questions, as well as for evaluating many dimensions of risk not previously available.”

The legacy methods of insurers are to assess risk at the point of underwriting or creating a policy, which is an old idea, as we now live in an age in which data is flowing and continually changing. Online content, social media, and the vast realm of accessible alternative data give insurers the ability to evaluate risk in ways never before possible continuously. By accessing, data relayed as a current, insurance carriers can evaluate risks continually overtime to catch a more detailed and comprehensive insight into that risk and take suitable action accordingly.

Traditional forms of claims assessment can be sluggish, expensive, and reflect an inaccurate picture of claimant action. Risks change in real-time, making it even more challenging to discover that “needle in the haystack” quickly while adhering to moral and legal boundaries and removing the specter of discrimination accusations. Accessing the new world of highly predictive online data produces insurers with a scalable way to uncover insights that have been too costly or difficult to find, until now.

Since its beginning, Carpe Data has been a leader in defining the methodologies needed to assure compliance with regulatory and privacy requirements within this modern world of next-generation data. The company has the expected infrastructure buildout to meet the rules of the GDPR.

Using next-generation data at the system is not just beneficial but highly recommended. With actual use-cases, Carpe Data envisions how non-traditional data sources past only social media are being leveraged as a tool for expediting claims processing, fighting fraud, and enhancing decision-making across an insurer’s complete claims portfolio.

Founded in 2016, Californian startup Carpe Data presents next-generation predictive scoring and data products to P&C and life insurance businesses. Leveraging the social web, online content, email intelligence, connected machines, and other forms of advanced and alternative data, Carpe Data’s products allow insurers to more accurately predict risk and innovate with new goods to meet changing customer habits.

Carpe Data’s contribution is well-timed to meet the growing interest in real-time, web, and social data to help in the underwriting and claims process, among other fields. Social media and online data give P&C insurers authoritative knowledge previously unavailable. It, therefore, helps increased pricing, underwriting, payment plan offerings, and numerous additional fields. The compelling ROI for Carpe’s customers will drive broader market adoption of new origins of data, leading to more accurate predictions, lower prices, and new product capabilities for insurers. Carpe Data’s technology, utilizing proprietary datasets and algorithms, is proven at scale to be expensive across the entire insurance policy lifecycle. Its social network screening method is compliant with the Fair Credit Reporting Act.

The Insurance Expert

Carpe Data empowers insurance carriers to leverage publicly available web and social data at scale, recognizing actionable, a relevant activity which can be used to facilitate claims processing and combat fraud, enhancing decision-making beyond an insurer’s entire claims portfolio.

Carpe Data is the best example of a business poised to facilitate the industry’s transformation to more comprehensive underwriting efficiency and the reduction of deception. By utilizing technologies like AI and big data to develop the insurance underwriting rule, both carriers and consumers will profit from its innovation and creativity. “The omnipresence of the internet, connected with the spread of the web, social, and other next-generation data, has produced an infinite source of new information for insurance carriers throughout the world to leverage. Carpe Data is dedicated to presenting legal and compliant innovative next-generation data extracts to the insurance industry—solutions that deliver a high ROI and are impactful beyond the policy life cycle,” says Geoff Andrews, COO, and Co-Founder.

Assess risk in a New Way

The insurance industry is quickly shifting to meet changing customer needs and behaviors. Carpe Data transformational data outputs enable carriers to assess risk with a completely new lens. Carpe Data provides predictive scoring to maintain underwriting insurance for personal, auto, life, and even small and micro-business that cannot be evaluated using traditional investment credit-based scenarios. Risk scores are possible for the 28 million small companies in the USA like beauty & spa, auto repair, wellness & health, restaurants, and hotels. Here’s a sample commercial peril score for a retail business. The technology even provides leverage to re-engage with and propose better coverage for customers because the system senses out real-time alerts on significant events within a client’s life like wedding, childbirth, job change, or home shopping. Carpe Data leverages the “social web, online content, wearables, combined devices, and other forms of next-generation data.

Max Drucker, CEO of Carpe Data, has been a pioneer in the usage of social media as an analytical tool. He first practiced that idea to help companies assess job applicants. “I felt that companies were already doing the Google search,” explains Max. “But that infringes the employee’s privacy.” So he co-founded Social Intelligence as a social media background screening business. “The only things that are relevant are given to the employer,” he explains. “Hence, the job applicant’s privacy is protected against unconstitutional discrimination.”

The company ultimately evolved to include insurance companies, primarily to fight workers’ payment abuse at first. And thus, Carpe Data was born in October 2016. Immediately after graduation, at 21 years old, he was chosen by Apple as a quality assurance engineer. “It was in incredible turmoil,” he remembers. “It was around the time that Steve Jobs was coming back to the business, and I had already decided to leave.” But he stayed in the Bay Area and established E-Coverage, the first online insurance company. “It failed shrewdly,” he admits. “It was a casualty of the dot.com period.”

But he persisted and then, with Michael DeGusta, founded Steel Card, the nation’s first online auto insurance business. “I had a unique opportunity to live anywhere I wanted to exist,” he says, “and I chose Santa Barbara/Montecito. “ He’d spent time here in 1992 struggling for Cliff’s & Co., delivering pizza. “I felt I was living in heaven,” he says. “I loved the lifestyle.” In 2006, they traded Steel Card to Lexis-Nexis for cash. “I’m an entrepreneur, through and done,” he says. “I love building. I love building companies. I love the highs and lows of the start-up. I like making money and contributing money, but having it is not important. You want new challenges. I perpetually want to do better.”

New Commercial Dataset

Carpe Data lately launched their revolutionary new commercial dataset for property and casualty (P&C) insurance businesses. “With this launch, we’re delivering label new data on more than 25 million businesses to commercial lines insurers,” states Max. “Insurance companies now have a powerful new origin for answering existing questions, as well as for assessing many dimensions of risk not previously available.”

This Carpe Data platform launch presents P&C insurers access to a range of use cases that can be applied beyond the entire policy lifecycle via three distinct offerings: The Carpe Data Classification System provides more detailed classification categories enabling insurers to gain a clear sense of the special activities the business actually conducts; Risk Characteristics allows an array of data points that identify current attributes of a company; and Next Generation Score and Indexes are predictive scoring tools of various business dimensions made available by leveraging developing and alternative data.

Available today, and already established by the company’s existing customers, Carpe Data’s new commercial data platform instantly improves the accuracy of any P&C insurer’s underwriting of coverages for small and mid-size commercial businesses across numerous lines of business while enhancing possibilities for automation and efficiency by increasing straight-through processing (STP). Carpe Data automatically gives these authoritative datasets, scores, and indexes via sub-second API integration straight to the underwriting insurer.

“The Carpe Data commercial dataset represents the rating factors of the future by providing real-time data which permits for faster and more accurate risk assessment,” adds Drucker. “Alerting insurers to differences in relevant data through triggers that continuously monitor new and emerging data sources describes a significant shift from static or point-in-time snapshots of information to an atmosphere where insurers can achieve absolutely automated underwriting.”

The company is inventing new goods that have not previously existed. More than seven years ago, they invented the concept of the “social media background check,” years before anyone else had envisioned such a thing. Today, we are building a whole range of data products that incorporate social media and other sorts of alternative data for insurance in ways others haven’t thought of yet. It is super creative and exciting to be inventing things that can genuinely affect the needle of the $1 trillion-plus insurance industry. I also get excellent satisfaction from employing an unbelievable team of local Santa Barbara talent and doing it all from the city in the Balboa Building.