Atidot: Helping life insurers become data driven companies
Atidot, Hebrew for ‘fortune telling’, is an early stage Israeli startup. They are building the first data cloud platform that understands insurance. It’s a cloud-based predictive analytics platform for actuarial and risk assessments purposes. Helping insurers become true data-driven companies. Insurance companies face increasing challenges in understanding the markets in which they operate. Data is abundant and analysis, legacy technology and methods lags. Insurers, or rather, actuaries are not doing all that they could with the available data. They look at data from a statistical perspective and miss out on the insights and perspectives that can be seen from different points of view. The traditional modeling tools that are being used are cumbersome and inadequate to handle new sources of data. And they’re too slow because they are limited in scale and flexibility; unable to cater for the huge volumes of data now available.
Atidot enables insurance companies to validate actuarial models and improve them as part of the ORSA process, assessment or as a DSS platform. The system analyzes data, runs models and segmentation simultaneously and builds the most accurate models for the customer’s needs. Using Atidot enables insurers to get more out of data, easily enriching the customer’s attributes using external sources and running the whole process quickly and automatically.
Fits insurer’s needs
The Atidot platform fits insurer’s needs. Atidot applies multiple approaches, simultaneously to process a much larger set of data. With multiple new insights, internal, external, social and IoT, greater levels of personalized and contextualization of customers, the Atidot platform takes the actuary down a path where they can look differently at how to create models.
Atidot’s platform connects to the insurer’s profit model to directly link behavior to company profits. Atidot can suggest alternative courses of action together with the money benefit (EV) resulting from each one. All connected to the insurers’ sales force to make it actionable and monitored. Instead of a linear approach to risk assessment, Atidot enables a lateral one. Creating new opportunities for the development of new products, improved underwriting and risk management.
Atidot’s Life Insurance Data Platform
Did you know only 8% of life insurers use big data to make decisions? And less than 20% of existing data is used for making informed decisions? Atidot will help insurers to become data driven. Their technology is based on three pillars:
- Strong crawling mechanisms and meta-data analysis, which enable enhanced data-enrichment capabilities
- Sophisticated big-data and machine learning algorithms
- Elastic cloud-based infrastructure which enables quick calculation with lower IT costs
Proof of the pudding
Atidot showed a sample of data from a live pilot they ran for a US Life business on a 50,000-customer sample. It showed that customers that paid their premiums on the 14th of the month had a 20% lower Lifetime Value than those that paid on the 1st. By enabling multiple data models to run simultaneously and picking the best model to better understand their customers, Atidot drew a relationship between data that the actuary didn’t have before. Nor perhaps, would they have intuitively thought of it or arrived at it through a linear modeling approach.
Another example is from a South African Life company who was building two life products – accidental disability and severe infection disease. To test the Atidot platform, they ran their traditional method alongside Atidot’s. Atidot found that they had a lot of data about their customers that they were not using or taking advantage of. And even if they tried to, the actuaries did not have the means to group this data and properly assess it in their models. Atidot could group the data differently using their technology and show them how they could significantly improve the accuracy of their forecast tables. Atidot showed them how they could look at data in a different way.
Why we selected Atidot for DIA Munich
We selected Atidot to ‘show and tell’ how they help insurers become a data driven organization quick and efficiently. Traditional models don’t have the ability to handle new sources of data. Nor do they have the muscle to process it. Atidot’s cloud predictive analytics platform will help translating all data into actionable insights and new product offerings.
Who is Atidot?
Founded in 2015 by CEO Dror Katzav and Barak Bercovitz. Both have a background in the Israeli military where they were in the Technological Unit of the Intelligence Corp. Both men have a background in cyber security, data science and software development. The company is powered by Moneta Seeds, DE Shaw&Co and bank Hapoalim.
Dror Katzav, CEO Atidot
Presenter: Dror Katzav
Contact Info: Melanie Shaffron
Email: [email protected]