New Self-learning Algorithm "Facio" Immunizes Against Insurance Disruptors
TEL AVIV, Israel, Feb. 11, 2020 /PRNewswire/ -- Facio Ltd., released its self-learning algorithm metrics which outperform any other technology that calculates insurance. More than 100 insurance carriers have engaged with Facio, an insurance BigData start-up, aiming to beat Lemonade's artificial intelligence technology, recently evaluated at $2 Billion. Lemonade states it collects 100 times more data than traditional carriers, enabling the company to generate highly predictive data and improve its underwriting and pricing. "We've watched Lemonade transform insurance using big data and AI, reaching half a million homes in a little over two years - a shockingly rapid pace," said Shu Nyatta from SoftBank Group.
To put the numbers in perspective, consider that average traditional insurance carriers have about 900 policies per employee. Lemonade breaks the numbers with more than 2,500 policies per employee. Insurers have been using BigData and AI for years, implementing operation automation and predictions designed by software developers and data scientists in concert with knowledgeable human actuaries and underwriters. Yet, the numbers are far away from Lemonade's efficiency.
"Data science, as we know it, is soon to be a thing of the past," says Liav Geffen, Facio CEO. "When you have all the available data, you don't need prediction, the self-learning algorithms outperform any human expert."
Like Google AlphaZero's self-learning algorithm, with no domain knowledge except for the business rules and the insurance carrier's historical data, such as policies, claims, and any available data, Facio algorithm achieved tabula rasa, and in less than an hour, a superhuman performance level of insurance predictive capabilities and convincingly underwritten insurance policies, far better than any model or method being used to date.
Traditional carriers hold a data treasure, which is an incredible asset that can only be leveraged by using BigData technology. Facio calculates tens of millions of historical policies and all available data simultaneously, in real-time, to determine the personal coverage that a prospective customer is going to buy, at the premium he is most likely to pay for.
While investors' $480M boosted Lemonade's innovative technology, in one insurance company, Facio offers more than 40,000 carriers an end-to-end insurance SaaS starting at 1$ per policy. Take State Farm's 83 million policies and more than $20 Billion annual expenditure on underwriting and policy management operations, for example, as by 2021 Facio algorithm may allow State Farm to offer its customers smart insurance products, while cutting expenses by more than 90%, which can be used for lowering premiums, giving back to the community or other opportunities.
Media Contact:
Liav Geffen
Email: liav@facio.io
View original content:http://www.prnewswire.com/news-releases/new-self-learning-algorithm-facio-immunizes-against-insurance-disruptors-301003056.html
SOURCE Facio Ltd
