Machine Learning Programs has launched MLP Score, an enrichment service which predicts the likelihood a driver is to make a claim on their motor insurance policy within the 12 month policy period.

MLP Score is the evolution of MLP’s Propensity to Claim model. Available at point of quote, it uses AI coupled with MLP’s access to 3-5m quote records per day to predict the likelihood of an insurance claim from an individual insurance buyer. MLP Score returns a risk score on a risk-by-risk basis via its machine learning model that is constantly retrained with the latest market data.

MLP says that the product aims to help maintain healthy loss ratios and the ability to price a policy with confidence by having a proven and effective means of assessing risk, ensuring that consumers receive a fair price for their cover.

Modified vehicle specialist Greenlight Insurance will be the first insurance business to use the new service. Tony Fehily, managing director of Greenlight, said: “In a world where we're all looking for a rating edge, MLP brings data science and analytics into the equation to accurately identify trends involving combinations of risk data. With the added impact that the political and economic climate is having upon claims inflation, driving loss ratios and uncertain market conditions, underwriters are under more pressure than ever to maintain profitable business.

“MLP Score brings invaluable additional enrichment that helps to maintain fair, accurate pricing and underwriting terms for our customers that accurately reflects the individual risk, whilst running a profitable book for our insurers.”

Damian Baxter, CEO at MLP, added: “Our data science team have put their hearts and souls into developing this for the motor insurance market and the results in test have been nothing short of remarkable; proven to have improved loss ratios by 4%, generating more than £1m in cost savings on claims.

“I’m thrilled for Tony and the Greenlight team that they are the first of our clients to go-live. We have a healthy pipeline of forward-thinking clients looking for first-move advantage and expect to see significant growth of this product throughout the rest of the year. Our product has been shown to have an immediate and ongoing positive impact on loss ratios by enabling a fair approach to pricing and risk assessment.”

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