AmTrust is excited to announce that it has entered into a strategic alliance with
Pinpoint Predictive, a leading data enrichment and explainable AI platform, enabling AmTrust to quantify future risk with greater accuracy than ever before.
Jacob Decter, AmTrust’s SVP of Strategic Development, said, “Data and analytics play an enormous role in core insurance processes and are crucial for improving stakeholder experiences. Pinpoint gives us access to unique and impactful business insights and represents an excellent case study in how we incorporate new technologies into our business.”
What is Digital Psychometrics?
Pinpoint has developed individual models of the US adult population using the latest advances in behavioral economics, enabling insurers to better predict and mitigate future risks. Pinpoint’s platform, OnPoint, provides carriers with explainable analytics of their datasets, to show the underlying traits that drive risk-related behaviors. This suite of data analytics leverages
digital psychometrics — the mathematical science of reliably measuring, validating, and standardizing individual psychological differences, including personality traits deeply rooted in the human constitution.
Psychometrics can help insurance carriers analyze the future risk propensities of individual insureds and their employees. While traditional psychometrics have helped governments and corporations mitigate risk in the past, these data have been hard to attain – let alone at scale. At the same time, some of the most powerful predictors widely used at scale today, like credit scores, are just a proxy for something much bigger: traits like trust, adventurousness, self-discipline, and assertiveness are predictors of human behavior, impacting all areas of the insurance process.
Applying Digital Psychometrics to the Insurance Industry
Personalizing predictive analytics with Pinpoint provides a
tremendous opportunity to treat people as true individuals. Indeed, there is a tremendous amount of signal in who is running a small business – above and beyond the characteristics of the business itself. Therefore, individualizing predictions also creates enormous new gains in predictive power and efficiencies that can be passed forward for the benefit of small business owners and their collaborators. AmTrust has found that the signal provided by Pinpoint contributes significant incremental boosts across a range of risk-segmentation and claims-optimization applications.
Pinpoint is currently focused on P&C and Small Commercial Insurance markets. While Pinpoint fully expects to see new discoveries as its platform is used across more lines of business and use cases, there are several areas that regularly see significant new boosts; these include claims frequency, SIU referral propensity at the point of quote, litigation propensities at the point of quote and FNOL, inspection and other premium-leakage models, and early cancellation, among others.
“AmTrust has the advanced capabilities and cutting-edge thinking we look for in a carrier partner,” said Scott Ham, Chief Executive Officer of Pinpoint. “The desire and ability of AmTrust to lead from the front make for a perfect partner to integrate individual-level modeling into commercial lines, which results in a more personalized view of its customers,” remarked Pinpoint founder Avi Tuschman.
Tony DiFranco, AmTrust’s Data Science Manager, highlighted that “Pinpoint has provided game-changing new data to drive markedly improved loss ratios through better risk selection and claims handling.
AmTrust Partners with Small Businesses
AmTrust Financial is excited about partnering with Pinpoint Predictive to help our small business insureds. To learn more about our
small business solutions, please
contact us today.
This material is for informational purposes only and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Coverages may vary by location. Contact your local RSM for more information.