Getting Data into Insurance and Using it Right with Max Drucker, Co-Founder and CEO of {Carpe Data
In the latest episode of Risk Management: Brick by Brick, Jason Reichl takes a trip to InsureTech Connect 2023 to chat with some of the best in the Risk Management world. This time, he chats with Max Drucker, CEO and Co-Founder of {Carpe Data, an organization that provides next generation predictive scoring and data products to insurance companies by leveraging the social web, online content, and other forms of next generation data.
https://youtu.be/SQh5BrP7LsE?si=VdzR1ahHRYFWXJe7
Jason and Max get into the weeds of not only the importance of getting data into the industry, but the need to focus on the uses of that data and integrate it seamlessly into the carrier’s existing processes. They discuss the slow uptake of technology in insurance, what will speed it up, and why young people should be getting into the industry.
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Avoid Data for Data’s Sake
If there’s one thing that needs to be done with data in the insurance industry, it’s that we need to avoid being overcome with data. There is a real risk that, not too far away, we will be so awash with data that we will have no idea how to put it into action. In order to avoid this, Max and {Carpe Data make it explicit to everyone what each data point is for and how it can be used to improve processes:
“We make it explicit, this is how you use this data. Data for the sake of data, or AI for the sake of AI, isn’t that interesting frankly (…) it’s just noise, but if we say, here’s a data element, this is how you use it, this is how you avoid adverse selection, this is how you avoid the bad businesses, this is how you prioritize the good businesses, this is going to improve your business and it’s super exciting”
Tech Uptake in Insurance
Although we are now in a place where more and more people in the insurance world are embracing tech, as evidenced by events like InsureTech Connect 2023, there are still many who are opposed to altering their processes by integrating new technologies.
“What’s possible now that wasn’t possible yesterday alright? And that’s exciting and that’s obviously where I want to be, and I think that these shows and whatever else, I think very few people are really in that space of these are new capabilities, this is actually something that’s different.”
Max believes there is a long way to go, but that there are steps that could help the tech uptake. For starters, instead of simply giving companies new tech, providers should take the time to work with them to integrate it into their existing processes. To Max, we just need to get over this speed bump. Once enough carriers are using data that helps them avoid bad risk, the carriers that are yet to take it up will appear to have notably bad business, acting as an accelerant in the industry.
To find out more insights from Max on getting data into insurance, tune in to this episode of Risk Management: Brick by Brick.
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