AI-Driven Financial Modelling and Forecasting for an Insurance Company

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Client Profile

The client is a mid-sized insurance company catering to individuals and enterprises in general insurance, term insurance, endowment and commercial insurance categories in the USA. With AM Best A+ rating for financial strength, and impeccable claim ratio, they are the leading insurance company in the respective segment running 24/7 customer support.

Problem Statement

With 20 years of experience, and AM Best A+ rating for financial strength, the client wanted to take a leap and expand its operations. With expansion comes challenges in financial modelling and forecasting; they required a comprehensive assessment of the company’s financial health, identification of areas for improvement, and the development of a strategic plan for future growth. With limited resources, optimizing the financial model was of paramount importance.

The main task was to devise an effective financial analysis and forecasting strategy, capable of unveiling trends and patterns in financial data, detecting fraud, evaluating risks, and performing credit scoring.

Featured services

Automated Application Process

Ensures higher productivity and efficiency with a significant reduction in spent time.

Data Integration and Consolidation

The process of consolidation which earlier used to take a weeks’ time can now be executed within hours.

Consolidated Reporting

Significant improvement in workforce productivity and business performance on account of automation of data consolidation and analytics.

Improved performance

Significant improvement in workforce productivity and business performance on account of automation of data consolidation and analytics.

Solution

Kanerika’s team, leading provider of AI-driven solutions, partnered with the client to address their financial analysis needs by leveraging the cutting-edge AI language model and employing relevant data models, such as LSTM and XGBoost. The solutions provided by Kanerika Inc. were as follows:

Data Analysis and Visualization: Utilizing advanced data models and AI engines, Kanerika’s team analyzed and visualized financial data, revealing trends and patterns that offered valuable insights into the client’s financial performance. Effective data visualization tools, powered by AI engines like TensorFlow and PyTorch, enhanced communication of financial insights to stakeholders.

Fraud Detection: We applied machine learning algorithms, such as Isolation Forest and Autoencoder, to analyze financial data and detect anomalies or suspicious transactions indicative of fraud. This proactive approach enabled the client to identify and address fraudulent activities, preventing financial losses.

Risk Assessment: By employing advanced financial risk assessment data models like GARCH and Copula, the model analyzed financial data and pinpointed potential risk factors. Identifying trends that could jeopardize the client’s financial health allowed the company to develop risk mitigation strategies and prepare for potential challenges.

Credit Scoring: To assess creditworthiness and generate credit scores, Kanerika Inc. utilized AI-driven solutions that analyzed financial data with algorithms like Logistic Regression and Random Forest. This evaluation of financial health provided the client with accurate credit scores, enabling informed lending decisions and minimizing default risk.

Results

Enhanced Financial Analysis: AI-driven solutions analyzed and visualized financial data, providing valuable insights into the company’s forecasted financial performance for the expansion.
Fraud Detection: Machine learning algorithms detected fraudulent activities, preventing financial losses and maintaining the company’s reputation.
Risk Mitigation: Advanced risk assessment models pinpointed potential risk factors, enabling the development of risk mitigation strategies.
Accurate Credit Scoring: AI-driven credit scoring provided accurate credit scores, minimizing default risk.
Business Growth: The comprehensive AI solution enabled successful expansion and increased revenue.
Competitive Advantage: AI-powered solutions gave the client a competitive advantage, enhancing its financial health and achieving business objectives.
Expertise and Commitment: The solution helped the company’s expertise and commitment to delivering impactful solutions tailored to clients’ specific needs.

Why Kanerika?

Kanerika is a niche consulting firm building efficient enterprises with deployment of automated, integrated and analytics solutions. Kanerika enables efficient enterprises through its unique digital consulting frameworks and AIOps enabled compostable solution architecture. We partner with some of the top vendors to solve some of the critical data and process related challenges. We help some of the top brands across the globe in increasing their speed to respond in evolving market conditions, reducing their cost of operations, empowering them with the right tools and insights for effective decision making.