QBE unveils second insurtech venture
QBE has announced an investment in UK-based start-up Cytora – its second commitment from a $US50 million ($65.55 million) insurtech fund.
Cytora uses artificial intelligence and open-source data to help commercial insurers lower loss ratios, grow premiums and improve expense ratios.
Next year the Cytora Risk Engine will be deployed across QBE property and casualty lines.
The risk engine, driven by machine learning algorithms, combines an insurer’s internal data on a specific cover with external information. This generates a risk score, which provides insight into expected claims activity on the whole portfolio and at an individual risk level.
“Combining external information with our own internal intelligence gives a more complete view of a risk, which in turn enables QBE to provide protection to our customers at a fairer price that reflects the true level of exposure,” CEO European Operations Richard Pryce said.
“The partnership with Cytora enables us to accelerate the adoption of advanced analytics in our business and complements the expertise we have been developing in-house.
“Cytora’s technology has broader application beyond risk scoring and will enable us to identify attractive areas that match our risk appetite and expertise, but where we are currently underrepresented.
“This will assist us to focus our efforts on the customer relationships where we can add greatest value.”
QBE’s first insurtech partnership, announced at the end of October, was with RiskGenius, a machine learning platform for analysing policy wordings.