AIG-backed insurtech Azur uses augmented underwriting to combat inefficiencies

Azur, a managing digital agent (MDA) specialising in the UK's high net worth insurance market, has partnered with technology firm Logical Glue to implement algorithms that it said will enable better risk analysis in order to free up underwriters to focus on more complex risks and broker relationships.

The partnership will tackle underwriting inefficiencies through a combination of explainable artificial intelligence (XAI) and machine learning.

The managing digital agent explained that its augmented underwriting solution will put customer data at the centre of operations to allow for real-time pricing and risk management. All data will be stored in one core system and then enriched by XAI at the back end to enable straight through processing and an improved user experience. Machine learning will then help underwriters improve their understanding of the risk.

The platform will integrate directly with Azur’s legacy portfolio, using an API to make better use of data. As soon as a quote is requested, the client data collected by the broker is combined with other factors outside the rating variables and then fed into three algorithms.

Lara Korz, chief data officer of Azur, said: “With the availability of ever more data and unlimited access to computing power via the cloud, XAI is going to become an even bigger a factor in the risk transfer process. It has taken some time for the insurance industry to enter the digital world, but technology is now influencing every aspect of this sector and will increasingly be used to create policies that are tailor-made for individual risks.

"Augmented underwriting gives firms the opportunity to make better decisions by comparing both assumptions and explanations. It was fantastic to work with Logical Glue to achieve this vision.”

Greg Healey, COO at Logical Glue, added: “It has been a rewarding experience to implement our machine learning system into Azur’s legacy portfolio. We firmly believe in Azur’s vision to streamline the insurance process for brokers and clients, and this new system will allow them to make better decisions in a shorter amount of time, with less hassle for all parties involved.”

“Embracing digitisation in insurance is the only way to reduce the inefficiencies the sector has long been known for,” he added.

Azur was launched in 2016 by AIG Europe as a joint venture with Ascot Underwriting. The company, based in London, launched a new insurance product designed for car collectors in March last year, and raised £13.3 million of series B funding in October to enter new markets and invest in its technology platform.