Artificial: Impact 25 2019 profile
March 5, 2019
This is a summary of the profile which first appeared in the Oxbow Partners InsurTech Impact 25 2019.
Artificial is a digital insurance platform for distribution, pricing, risk negotiation and policy administration.
Artificial’s platform is structured around four core products:
- Build has two functions. The first is to automatically capture information for the quote and buy journey. This could be from unstructured documents such as emails, using the company’s machine learning technology. The second is to create insurance products and allow for the digital negotiation of complex risks
- Distribute makes front-end websites, portals and mobile apps available to customers on a white label basis. These can be used to capture data or for quote and buy journeys
- Price is a modular machine learning pricing engine that works with internal as well as third party data
- Manage facilitates the management and automation of the post-bind workflow, including policy administration, endorsements, complaints, reporting and claims
Several insurers and brokers have implemented the company’s systems, including AXIS’s A&H team which used Artificial to digitise its distribution and negotiation of risk. This resulted in a 75% reduction in the time to create a policy and a 19% increase in revenue.
Artificial also provided a new suite of distribution channels for Medical Travel Shield which enabled it to build an extensive partner network. This resulted in a 400% increase in the MGA’s conversion rate, a 4.8x increase in revenue and a 90% reduction in support calls.
The company announced a new partnership with Capita in 2019.
“We selected Artificial since we felt that the technology they use, coupled with their vision and proven track record of delivery, were a perfect match for us.”
Geoff White, CEO, Tarian
Company in action
Client situation: Aon Affinity EMEA needed a new platform for the distribution and management of policies, including the ability to integrate into the Aon Affinity EMEA’s existing infrastructure (AQUA).
What they did: Artificial Labs provided a policy management system with distributor integrations, third party data sources and network repairs. Artificial also monitored for fraud, provided reporting and complaints functionality and automated over 60% of claims.
What impact it had: The platform is now operating in three countries and has processed over 500,000 policies.
The Oxbow Partners View
Artificial Labs has done well to build a profile in the highly competitive insurance platform market. The market is tough to penetrate because there’s a natural bias towards established systems – nobody, least of all major players, wants to commit themselves to a system that could fall over for technical or commercial reasons. It is, therefore, a strong sign that Artificial Labs onboarded Aon in 2017 and Capita in 2019.
The next 12 months will be critical for the company as they move into a new phase of development and growth. They need to continue to prove their ‘next generation’ system credentials, but also develop a broader-based set of differentiating capabilities. This is a congested market – Oxbow Partners has over 250 policy admin systems in its database – and ‘simply’ being legacyfree has already ceased to be a USP.