Apollo Managing General Agency, LLC (Apollo), a provider of non-standard personal automobile insurance through independent agents in the state of Texas, and Guidewire GWRE announced that Apollo is leveraging Guidewire Predict to segment risks by their impact on loss ratio to better compete in the Texas auto insurance market.
Apollo MGA services a higher risk segment of the population in Texas and was looking to leverage advanced analytics to power the next stage of profitable growth. Therefore, analytics is now a pivotal focus of the company’s business. Apollo dives deep into its data on a daily basis and it wanted to stay ahead of the curve and make sure it had the right tools to slice-n-dice the data to find real indicators of profits and profitable pockets of risks. The company engaged the Guidewire Analytics Services team to build a rate adjustment model using an ensemble of decision trees that helps segment risks by their impact on the loss ratio. Apollo believes the model will shrink the segments that negatively affect the loss ratio the most and expand the segments with good risks, resulting in improved underwriting profitability. As the company learns more about Predict, it plans to expand usage with claims modeling.
“We are proud of our focus on the non-standard personal auto insurance market in Texas and serving drivers who are not able to purchase insurance anywhere else,” said Greg Corbitt, Vice President, Product Management, Apollo. “Predict really goes deep into our data that traditional tools were never able to open, helping us adapt to changing market trends such as inflation and the Texas Department of Insurance’s rate changes. We will be able to offer a more competitive price to many customers, while simultaneously increasing overall profitability and continuing to stay ahead of our competition.”
“Oftentimes, our customers like to stay under the radar. Trying to get those risks priced appropriately can be difficult,” said Rachel Norris,…