#Turkey #CARY #Neova Sigorta #SAS AI #Insurance Pricing

Neova Sigorta Innovates Auto Insurance Pricing with AI

In a groundbreaking initiative, Turkish insurance provider Neova Sigorta is set to revolutionize the auto insurance sector by leveraging advanced artificial intelligence (AI) to optimize its premium pricing structure. This collaboration with SAS, a leader in data analytics, and Sade Software & Consultancy, marks a significant enhancement for up to 95% of its clientele.

The newly launched project aims to provide competitive, fair pricing by employing sophisticated machine learning (ML) algorithms to analyze various factors influencing insured behavior. This is one of the first significant implementations of such technology in the Turkish insurance market and is expected to translate into noticeable savings for customers while simultaneously reducing operational costs for Neova Sigorta.

Choosing the Right Tools

Neova Sigorta has selected the SAS Dynamic Actuarial Modeling platform, which is designed explicitly for AI-driven premium modeling in both general and life insurance sectors. The integration of this solution will allow for a comprehensive analysis of various parameters that impact pricing, leading to more accurate and personalized premium offers. Sade Software will oversee the implementation of this innovative technology, ensuring that the process runs smoothly over the next six to eight months.

Neslihan Neciboğlu, CEO of Neova Sigorta, emphasizes the importance of prioritizing customer satisfaction in their business model. She stated, “Affordable premiums are a primary contributor to customer happiness and retention. We are excited to collaborate with SAS and Sade on this initiative that will elevate our customers’ experience with the Neova brand.”

Proven Results from Collaboration

Past collaborations between SAS and Sade Software have demonstrated marked improvements in the insurance sector. For instance, the right pricing strategies were able to enhance sales by approximately 15% and reduce an insurer's combined ratio by about 10%. This project's integration is expected not only to attract new customers but also to bolster renewal rates among the existing customer base.

AI and ML involvement in pricing strategies denote a significant shift away from traditional methods, which primarily relied on generalized linear models (GLM). Although GLMs are useful for interpretability, they often failed to offer accurate estimates due to various limitations, including poor data quality and sample size. In contrast, machine learning approaches do not impose any assumptions on the underlying data, allowing for better adaptability and more detailed customer behavior insights.

The Future of Insurance Pricing

As inflation and economic instability push consumers to seek more affordable insurance options, Neova Sigorta’s shift towards real-time decision-making capabilities in pricing promises significant benefits. According to industry experts, insurers that adopt modern methodologies risk losing customers to more competitive alternatives. By ensuring transparency and fairness in premium pricing, Neova Sigorta aims to enhance its reputation and customer loyalty.

Moreover, the project's governance model will enable Neova Sigorta to maintain accountability and construct trust with its clients, essential components in today’s financial services landscape.

As Rasim Eğri, General Manager of SAS Türkiye & Central Asia notes, this initiative exemplifies the potential for AI to transform the insurance industry. “Neova Sigorta is spearheading innovations that will define the future of insurance pricing and customer service”, he said, emphasizing the need for tangible results in profitability sourced from AI investments.

In conclusion, as Neova Sigorta integrates AI into its premium pricing processes, the company is not only poised to improve financial outcomes for itself and its customers but to set new standards for the insurance industry in Turkey and beyond.