In the world of car insurance, assessing the risk of policyholders is a critical task. At kasko2go, we've developed a system that I believe revolutionizes this process by providing advanced risk assessment capabilities. This system enables insurance companies to better understand the risks they're taking on, allowing them to adjust their pricing and customer selection criteria to improve profitability.
What sets our system apart is its customization. It's not a one-size-fits-all solution. Instead, it's a custom-made risk assessment model that's trained based on our data and the data provided to us by the insurer. This means that each model we create is unique to the insurer that purchased our product. The uniqueness stems from three main factors:
- The model is partially built based on the insurer's data, which is unique in the market.
- The insurer's data reflects their prior biases and marketing targets, which better selects for a specific segment in the market.
- The modeling process we use might be different for each insurer, as the model is created based on the modeling tools best suited for the task.
A question I often encounter is: If everyone in a given market were to use our system, wouldn't that remove the advantage that everyone has in the market? The answer, I believe, is no. In fact, if all insurers in a market were to use our system, it would lead to more effective niche utilization by each insurer. The segmentation in the niches found in the data of each insurer would make that model unique and better select the risk in them.
Even in cases where companies might segment the same niche with our models, the difference in prior selection of the data will lead to divergence in the models and the risk assessment. This ensures that there's still room for differentiation and competition.
A prime example of this can be seen in Latvia, where the organization LTAB collects market data from all insurers and provides a risk model to all. Despite this shared data and risk model, the prices of insurers still differ, proving that even in a data-concentrated market, there's still room for competition.
In conclusion, I don't believe our system stifles competition, it enhances it. It gives an advantage to the first mover in a given market, allowing them to better segment potential policyholders and collect the best possible customers before everyone else has the chance to move in. At kasko2go, we're committed to providing unique, custom solutions that drive profitability and foster healthy competition in the market.