(Image source: GAIC homepage.)
Great American Insurance Group (GAIC, Cincinnati) has engaged with Optimalex (New York), to pilot its suite of technology solutions for claims management. The pilot will explore areas of opportunity for predictive analytics to improve efficiencies and customer service, according to a vendor statement.
Optimalex provides AI-based legal predictive analytics software for claims management. The company explains its value proposition for insurance carriers as twofold: first, improved efficiency measured by a reduced loss ratio; second, better customer service through consistent and fair compensation. Both, the vendor says, are key to sustain the long-term profitability of insurance carriers.
Optimalex was founded by Frank Giaoui following an unsatisfactory result 15 years ago when pursuing damages compensation. “I was never compensated because my damages were difficult to quantity,” Giaoui says. “I realized the law was such that outcomes of compensations are highly uncertain, leading to inefficient litigation and unfair settlements. I embarked on a research project, the end of which was a Ph.D. In 2020, I founded Optimalex with three other partners to implement a vision of fair compensation and factual evaluation of claims.”
Optimalex’s process starts with understanding the relevant law in any claims situation. Then, from a small sample, it develops the hypothesis for the legal and economic variables which are predictive of the outcome in those particular cases. The next step involves using large sets of either public or private sources of data, it automatically extracts and curates the relevant predictive variables. Finally, it validates or amend the hypothesis on the larger sample.
“Our system iterates the process as many times as necessary to optimize the predictive algorithm in terms of both accuracy and interpretability,” Giaoui explains. “Finally, those algorithms are embedded into an intuitive user-interface called AGATHA.”
Gauoui says Optimalex’s partnership with GAIC will allows the startup to implement its continuous development and improvement processes with claims managers. “We can receive their real-time feedback,” he notes.
“We are honored by the trust put in us by Great American, and we are delighted to assist them in taking the journey from data to prediction,” adds Giaoui. “We believe this collaboration will be mutually beneficial for both parties.”