MLP (Machine Learning Programs), part of the Open GI Group, has launched MLP Score, a cutting-edge enrichment service which predicts the likelihood that a driver is to make a claim on their motor insurance policy within 12 months.

MLP Score is the evolution of MLP’s Propensity to Claim model. Available at point of quote, it uses artificial intelligence (AI) coupled with MLP’s unique access to 3-5 million quote records per day to accurately 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, ensuring that clients are provided with the broadest, most up-to-date and relevant market insights.

Designed to enhance commercially responsible insurance businesses, MLP Score promises a big leap forward in maintaining 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.

Greenlight Insurance will be the first insurance business to use the new service. Greenlight specialises in insuring modified vehicles, and MLP will improve the speed and accuracy of quotes through the use of MLP Score’s artificial intelligence.

Damian Baxter, Chief Executive Officer, MLP comments:

“We’re so excited to launch this new service. 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 £1 million 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 a 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.”

Tony Fehily, Managing Director of Greenlight says:

“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 a 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. Highly technical in what they do, but with a human side, we’ve been working with MLP for three years now and we’ve found the team personable, professional, engaging and responsive throughout. They’re great to work with.”

Greenlight plans to use MLP Score to rapidly and accurately assess risk at the point of quote, reducing any undue underwriting admin. They will integrate the service with Ratings from Open GI to manage and control their products centrally, while being able to report on performance and react to changing market conditions.