Humn: insurance operating system for ground transport
AI and ML are two of the worlds most talked about when it comes to tech innovation. But both terms still have a lot of question marks related to them. What does it add to the experience that insurers can give to their clients? Humn intends to answer that question and has the ambition to show the industry that with the right algorithm, anything is possible. “We focus on building machine learning into the things that people use every day. Building big things that bring small things to the future.”
At DIA Munich 2022 Humn was invited to present its vision and show its product. In this editorial, we share what was mentioned on stage.
Humn’s solutions are all about AI-powered practical tech. Data is down to earth. Using machine learning to build accurate database systems that make sense of real-world scenarios. It’s “Sci-Fi” without the “fi”: Less guesswork, leading to improved accuracy. By refining the way the world’s information is processed and applied, it strives to shape a brighter tomorrow.
In its platform, the company uses a geospatial risk model and leverages real-time driving events to deliver dynamic pricing for insurance. It gives fleet customers a clear and clean way of looking at risk in real-time. Humn provides its clients with a safety score and the trend of the safety score. This score is linked to risk exposure, which is used for pricing. The higher the safety score, the lower the exposure and thus the premium. Humn created a bonus malus model to discount or increase the premium, which is the basis of its dynamic pricing methodology. The platform can identify which drivers impact risks (and premiums) most and how to improve this.
Apart from the platform giving a clean user experience for fleet owners to manage risk, Humn has a view on claims and on the main events that are driving the safety score up or down.
How does it work?
In the platform, you can manage drivers who are categorized as poor, fair, and good score drivers. Furthermore, you can view the ‘distance driven’, the ‘number of weeks in the zone’, and ‘key events impacting the score”. You can also see the ‘individual driver safety score’ and then the ‘premium year to date’ as well as the vehicle that they might be checked into. From this point, you’re able to manage drivers. You can check them in and out of vehicles. This can be done either from its console or be done programmatically by an API.
With Humn’s platform, it is possible to track whether drivers are improving, linking a score to a premium for an individual driver and tracking whether it was discounted. The finances and invoice for the past 30 days are shown, allowing you to check the maximum premium, the premium per drive, and the premium per journey. This way the finance department has details to actively monitor and steer their fleet.
Journeys are tracked in real-time on the platform. Not only allows the user to view risk events and suggest ways to fundamentally change behavior, but also to show live vehicle data, such as whether vehicles are stationary, whether they’re covered, who is the driver (current and previous), and general vehicle information such as MOT history and tax.
Humn builds the insurance operating system for ground transport. It was founded in 2018. Since 2019, it has raised over £20 million in funding. The team has grown from 6 to 90 people while maintaining a global operating model. It has built an MGA in the UK on top of its data platform and it has over £30 million of gross written premium while delivering competitive loss ratios.
It has completed and integrated its first acquisition and is running pilots with OEMs and mobility platforms to show how it can embed its operating system within these platforms and host third-party carriers and MGA pricing to deliver dynamic pricing and risk management as a service.