QBE backs AI to improve commercial underwriting following Cytora trial

QBE’s UK operations have started using artificial intelligence to help its underwriters make better decisions when selecting and pricing risks, something it claims also allows its UK customers to purchase cover more quickly and effectively.

The move is the result of an investment by QBE Ventures, QBE’s venture capital arm, in December of 2017 in a company called Cytora, an artificial intelligence company, and a subsequent trial of its technology in the UK.

That trial has been deemed a success meaning QBE UK has integrated Cytora’s AI-powered risk rating engine into its commercial underwriting process and QBE Australia has also announced plans to deploy Cytora’s Risk Engine this year.

The Cytora Risk Engine learns the patterns of good and bad risks over time, combining the digital footprint of every business with insurers’ internal data to generate a risk profile and score for each business and commercial property. These insights equip underwriters with greater visibility into risk factors and the overall quality of each submission, leading to improved conversion, retention and reduced loss ratios, the company claims.

QBE underwriters across the UK now have access to Cytora risk scores for property (fire, flood & windstorm) and real estate.

Matt Roles, director of property - UK, QBE European Operations, said: “Our UK underwriters have embraced Cytora’s technology and data to enhance their decision-making when pricing risks - both for renewal and new clients. This has given QBE a competitive market edge, which we, in turn, have been able to relay onto our customers with more refined and accurate pricing.”

Amanda Doran, head of business, combined, QBE European Operations, added: "The role of the underwriter is evolving incredibly quickly, and it is vital that we are able to work smarter and optimise decision making with all available data and information sources.  This in turn allows us to spend more time focussing on supporting our customers in the holistic management of their exposures.”

Richard Hartley, CEO of Cytora, said: “It’s really exciting to work alongside companies like QBE who are committed to revolutionising the underwriting process to benefit its team and its customers. We believe AI underwriting is the future of the industry, and we’re thrilled to be working with QBE at the forefront of this transformation.”

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

AmTrust replaces Maiden Re with Swiss Re on US quota share deal

IAG again expands cat coverage by A$1bn at ‘flat’ renewal rates

R&Q targets growth in European program sector with new partnership

Chubb Europe completes move from London to France ahead of Brexit

WR Berkley appoints general counsel; hires financial lines exec from Chubb

Athora completes acquisition of Generali Belgium, plans rebrand

Cyclone Burglind (aka Eleanor) to cost industry €756m

Don't miss our insurtech email newsletter - sign up today