Efficient use of machine learning in underwriting and distribution through the Risk Ops platform helps partners double down on growth opportunity.
Holding more than $12.713 USD in direct written permission globally, Hyundai Insurance has constrained to invest in its presence in the United States. Critical to this strategy has been their MGA partner Hawaiian Hurricane Group, led by industry veteran Steve Doucette. After 30 years at the helm of US P&C leaders like Milwaukee Insurance Group and Great Northwest Insurance, Doucette characterizes Hyundai’s opportunity in the states this way:
“Our feeling has been that the insurance industry is using yesterday’s information and skill sets to solve today’s thinking. Federato’s solutions provided a whole different way of looking at an industry that has tons of data but struggles with how to appropriately use it.”
Steve Doucette, CEO + founder
Hyundai and Hawaiian Hurricane have seen significant growth in their existing programs. Critical to their continued success were:
The teams started with a comprehensive deep dive into the existing approach. Hyundai + Hawaiian Hurricane had a unique understanding of distribution dynamics in their target markets. Equally important however was the proprietary approach to underwriting cat exposures that made this book of business attractive to reinsurance partners.
The challenge? The team needed a way to incorporate frequent shifts in appetite into their distribution channels to minimize cat risk accumulations. Critical, however, was maintaining producer relationships in the face of an increasingly competitive environment.
By taking advantage of Federato’s advanced federated architecture and Risk Ops platform, Hyundai and Hawaiian Hurricane integrated their policy administration data with existing cat models and 3rd party data sources. Together these resources take advantage of machine learned dynamic optimization to maximize premium subject to existing rate goals, appetite restrictions, and cat accumulation constraints. By providing a proactive “punch 1st” view of in-appetite accounts where Hyundai + Hawaiian Hurricane had a distinct pricing advantage brokers were able to target marketing efforts while avoiding adverse selection issues.
Hyundai + Hawaiian Hurricane contract to use the Risk Ops solution in production. Federato’s systems power care underwriting + distribution program efforts. To date, the solution has helped to increase growth while decreasing reinsurance costs through improved confidence in the group’s cat strategy. The Risk Ops approach has also played a key role in launching a new line of business for 2021.
Hyundai Insurance Fire + Marine
Hawaiian Hurricane Group
Operations: USA – Korea
Website: hyundaiinsuranceusa.com, hawaiianhurricanegroup.com
Lines: Commercial Property,
Hurricane, Personal, All Other Peril
Employees: 100-500
Key benefits of Risk ops:
“The whole idea of Risk Ops just opens up new ways of thinking. It’s not just marketing or underwriting or actuarial – I can make an impact across all of it. It just blows me away that our company can use this tool for breakaway from the competition.”
Steve Doucette, CEO + Founder
Federato is an underwriting platform for Risk insurance carriers that uses a collaborative, real-time approach to coordinate risk selection and proactively safeguard your portfolio. Learn more about our Risk Ops solutions here.
Contact us: 812-455-5538 or schedule at federato.ai
