Ablera: Gaining competitive advantage utilizing the power of AI and ML in insurance
At DIA Munich 2022, Ablera will share its expertise and present how its solutions bring AI and ML into the insurance core business. We have the pleasure to sit down with Anry Levy, CEO Ablera, to talk about AI and ML and the opportunities they bring. Ablera is an Insurtech that develops and implements solutions for the digitalization and innovation of insurance, focusing on Europe and the Middle East.
What characterizes Ablera?
“The company is relatively young; however, it is the new venture of a team with more than 30 years of experience in developing successful core insurance software with over 80 implementations worldwide.”
Ablera is a European Insurtech focused on developing cutting-edge AI-based technologies. We bring game-changing innovation into practical applications to solve some of the most complex problems in the insurance industry. Based on decades of experience in insurance software and incorporating cutting-edge technologies, Ablera’s platform SERDICA comprises a suite of products designed to transform and optimise key business processes.”
What or who is Serdica?
“SERDICA Suite enables incremental modernisation of legacy core systems. It is a modern cloud-native platform with a microservices architecture that enables digital transformation in a smooth, manageable way. Through accumulated data using AI and ML, it helps insurers to simplify digital transformation while delivering unparalleled customer experience. All solutions within the SERDICA Suite can be used stand-alone or integrated.”
Talking AI and ML, how do they help in gaining competitive advantage?
“Insurance companies should become more adaptive, innovative, and customer-centric to compete effectively. The degree to which data can be accumulated impacts an insurer’s competitive advantage. AI/ ML applications enable effective analysis and interpretation of data to draw conclusions on client behaviour and market dynamics which fuels better and more strategic decision-making.”
What are the results that you see with your clients?
“Our solution ABACUS is a specialized tool for modeling insurance premiums that consists of stand-alone ML-based pricing and rating engines. Enabling insurers to achieve a time-to-market that was unthinkable before. One of our customers, VIG’s Bulstrad, used ABACUS in motor insurance to increase profits by 4.77% while increasing the number of policies sold by 3.86%. In the Middle East, one client used ABACUS to increase profits by 7.24% in Motor, while another increased net profit by 7.57% in Group Health.
The benefits are not only for insurers, but also for low-risk clients who will now be able to enjoy lower premiums due to the company’s ability to accurately assess risk.”
What is your vision for the future?
“Insurance products are among the most commoditized in the financial service industry. Insurance is a product people buy, yet hope they will never use. Showing additional value is therefore hard and competition is mainly based on pricing. To reduce churn, companies will need to come up with smart ways to attract low-risk clients with lower premiums and compensate adequately for higher-risk clients.
What we see now is a rise of AI/ ML applications in data analysis and this will likely go far beyond the pricing of insurance. Advanced analytics allows companies to shift from the “react-and-repair” to the “predict-and-prevent” model. Moreover, it allows for a better understanding of customer needs, behavioural patterns and risk profiles.
Trying to go beyond pure price competition, insurers struggle to differentiate their offering and value proposition. A strong brand identity allows for a better positioning, which makes insurers try to be seen as innovative, trustworthy, reliable and caring. The best way to achieve this is through delivering superior customer service.”
And what do you see as success factors? Now and in the future?
“Winners will be those that are the fastest to adapt, both to technology and shifts in market dynamics. It is key to keep flexibility and the ability to react, while at the same time following a long-term vision and strategy. Insurers will need to build a strong eco-system that will allow them to complement their offerings with those of companies with a strong brand identity that shares their mission, vision and values.
AI/ML adoption will help utilizing big data to get better insights into customer behaviour and risks, which facilitates a better product offering, more accurate pricing and better customer service.
When it comes to ‘how there is a major shift from ‘build to buy’ perception in terms of acquiring new technologies. One does not need to be an expert in everything if one has access to experts. We see that core systems are being transformed into eco-systems of different vendors. Insurtechs are a major component of these eco-systems, as they are smaller, more agile and fast-moving entities that can keep their focus explicitly on R&D. And vice versa, working with different insurers allows insurtechs to focus on the actual problems in the industry and tackle it at its core cause.”
Who is Ablera?
Ablera is a European Insurtech that was founded in 2018 by a team with an extensive experience in the industry. It combines domain expertise with the capabilities of AI/ Ml to create solutions that address the challenges of today’s insurers.
The company is self-funded and has had a ready and implemented a suite of products within those 4 years. It focuses on R&D continuously to push the technology frontiers and deliver an unparalleled competitive advantage to its clients.
The reason for this fast growth is in the knowledge gained, together with an R&D process, based on recommendations by leading Analysts, such as Gartner, Celent, and Forrester.