Behavioral intelligence is transforming how insurers assess risk, enhance profitability, and promote fairness in underwriting. In a recent interview with AAIS Partner Pinpoint Predictive, Inc., we explored how carriers can leverage these insights at key stages of the insurance value chain—from risk selection to renewal strategies. Scott Ham, CEO of Pinpoint Predictive, Inc., explained that by incorporating unconventional technologies and behavioral insights, insurers are gaining a more complete picture of their customers, leading to smarter decisions and more equitable outcomes.
How Insurers Can Leverage New, Unconventional Technologies and Insights to Improve Loss Ratio
Ham believes that new behavioral insights offer insurers a critical tool to enhance risk assessment and loss ratios. "Insurers can leverage new and unconventional behavioral insights by performing better, more thorough risk assessment," he explained. These insights provide an additional layer of understanding that complements traditional factors used in risk evaluation. With the inclusion of behavioral insights, carriers get "a factor that to date they haven’t had access to," offering a fuller picture of the risk profile. This allows them to make more informed and profitable decisions.
How Carriers Can Integrate Behavioral Intelligence Into Existing Risk Mitigation Strategy
Carriers can integrate behavioral intelligence into their risk mitigation strategies at multiple points in the insurance value chain, according to Ham. By using behavioral insights, they can target individuals whose profiles align with their risk appetite, tailoring risk selection from the outset. "It goes down the insurance value chain, where they can dictate the buying journeys based on these new insights," Ham explained. Additionally, carriers can use behavioral intelligence to develop renewal strategies, allowing for a more dynamic approach to risk management.
Using Behavioral Insights to Help Carriers Achieve Goals of Equity and Fairness
Behavioral insights can play a pivotal role in helping carriers meet goals of equity and fairness. "By getting that complete picture, we have to recognize the uniqueness of individuals, and behavioral insights are exactly that—they’re telling the carrier unique insights about that individual, so they don’t have to bucket them or ban them, " said Ham. He explained that by understanding individuals on a more personal level, carriers can avoid the unintended exclusion of certain groups, ensuring a more inclusive approach to underwriting and risk management. "It’s not based on banking, so you’re getting insights that are more inclusive of individuals, as opposed to those that may unintentionally exclude some."
About Pinpoint Predictive, Inc.
Ham described Pinpoint Predictive as "the ultimate risk selection platform." He elaborated, "Pinpoint Predictive leverages machine learning and these new unconventional behavioral insights to deliver unparalleled precision in underwriting and actuarial decisions.” The company’s platform addresses not only profitability for insurers but also improves the overall customer experience and provides agents with better tools to represent carriers effectively. "For me, Pinpoint is that ultimate risk selection platform that allows everybody to win.”
Learn more at pinpoint.ai.
To view the full interview with Scott Ham, click on the video above.