Integrated Pricing and Business Analytics Solutions Designed for Insurance

Data driven decisions to achieve better performance

www.earnix.com Using Data to Make Better Business Decisions

To compete in today’s sophisticated economy, it’s critical Insurance carriers can orchestrate offers across their that your business decisions about pricing and other offer customer base giving them the ability to: components take into consideration the abundance of data • Compete in the new personalized economy available and be made using the most advanced analytical techniques. Today’s consumers have come to expect • Deliver improved revenues and profitability highly personalized, relevant interactions with their service • Optimize offer components such as price and providers. It’s the new norm. product features Is your decision-making based on • Integrate real-time data and analytics directly into this type of customer insight? operational business processes

With Earnix, insurers can incorporate the same advanced • Use the most advanced technologies, such as analytics that make better business decisions possible machine learning, to make the entire process fast for the tech giants, and enable them to present a highly and efficient customized user experience.

Earnix has a long and successful track record of working with many of the world’s leading insurance com- panies. As a result, we offer the industry’s most comprehensive pricing & analytics software - as well as expertise gained from working with these sophisticated institutions.

2 Earnix Overview The Insurance Industry

Effective insurance pricing and business analytics requires the ability to bring together an abundance of data along with numerous sophisticated models in order to run simulation and optimization scenarios for use in selecting the right strategy. The Earnix solution suite provides all of the components needed to apply advanced risk and demand modeling and analytical optimization to both personal and commercial lines. The result is the ability to quickly and dynamically adjust prices in a rate scenario testing environment in order to understand all of your key performance indicators prior to deploying pricing and underwriting decisions. The Earnix Insurance Solution Suites

Earnix’s solution suite for Insurance provides the the freedom and flexibility needed for analytics most comprehensive set of pricing and analytics professionals and teams to make quick business tools designed specifically for the insurance analyt- decisions. ics professional. The Insurance Suite’s integrated After the initial set up, managers and analytics modules work together and are flexible — in order professionals can use the single interface without to adapt to the needs of your evolving business. technical guidance. Minimal customization of the You’ll benefit from the increased efficiency and environment is needed, so you can be up and run- integration that comes from a single user interface, ning in a matter of days. as well as the reliability that comes with not having to duplicate data - which can often be error prone. While Earnix offers the choice of either cloud or on-premise deployment, most select the cloud en- As the user moves from one module to the next, vironment because of the many benefits: fast and results are delivered quickly — and in a consistent easy setup, improved security, minimal IT involve- fashion — without IT support that is often needed ment, and minimal initial hardware expense. from custom integration processes. Earnix offers

Earnix Overview 3 Data Management Release to Production to Execute Proposed Changes in Real-Time This module helps insurers integrate data from multiple sources into a single repository for model- Real-time integration translates into being able to ling. It imports, cleans, modifies, and prepares data Earnix Solution Modules develop, analyze, deploy, and present customer offers for model building. It is designed to avoid the inef- almost instantaneously. Quick delivery means being ficiency of having to query external data manage- more competitive, and being able to react quickly ment tools to perform simple actions. to changing market dynamics. Once pricing projects and scenarios are executed in Earnix, they can be transported via web services and API technologies to Visual Modeling customer-facing channels and systems. These offers can also be tracked for optimal governance and man- Analytics professionals have the ability to model agement. The Earnix solution accesses a full library risk, demand, conversion, and retention propensi- of tested offers that can be delivered in sub-second ties at the level of sophistication your organization times across various time periods and to downstream needs. This can be done in a visual manner all while deployment software systems. advancing the analytical maturity of your modeling efforts with machine learning and hybrid modeling Monitor Customer or techniques. All relevant diagnostics for model con- Competition Movement struction are available, providing a faster and more intuitive interface than other vendors provide. with Ease What-if Simulation What is the result of your price change? What are the conversion rates and how are customers responding? Key performance indicators can be monitored to quickly Many pricing scenarios must be considered and understand if you are achieving your desired goals, or if compared in order to understand potential volume you need to modify your pricing or business decisions. and profit trade-offs and then select the best op- Insights can be incorporated into the closed loop feed- tion. Develop refined estimates of the outcomes back process to improve analytical projects and pricing before you put the decision into the market using scenarios over time. what-if simulation. Decision Optimization Reporting

Decision Optimization helps you understand busi- Reports and visual insights are only as good as the ness tradeoffs to maximize results. Combining data and analytics that lie underneath. With Earnix, predictive models across various dimensions ena- you can easily share insights across the organization bles a holistic view of your insurance portfolio. You or lines of business quickly. Not only do you have can also easily add or change internal and external access to both 2D and 3D reports, you can create constraints to understand the implications on your reports in a variety of formats, including bar and optimized scenarios, dimensions, policies, and graph reports, scatter plots, box plots and heat maps, business goals. Management can be confident that efficient frontier and sensitivity analyses, and geo- the best possible product and price combinations spatial reports. Business analysts and managers can to meet customer needs while optimizing company generate reports on their own and distribute them in goals for price, volume, retention, and profitability multiple formats as required. Insights can be gleaned are deployed. by analytics professionals and executives quickly, and that information can be used to make business critical decisions.

Decision Optimization provides both a granular and Reporting provides detailed insights on the KPIs and metrics graphical view into proposed business tradeoffs. that matter most to your organization.

4 Earnix Overview Earnix Overview 5 A Complete Solution for the Predictive Analytics Era

Predictive analytics is no longer a nice-to-have. It’s a requirement for organizations that need accurate insights from their data — in order to make better decisions and achieve their financial goals.

Accelerate the time-to-market of new product offer and price decisions.

Increase competitiveness by enabling users to quickly analyze, determine, and deploy informed and actionable decisions. The Earnix solution enables you to make product adjustments in real time.

Discover the impact of offer, volume, and other variables on business performance. Earnix gives you the ability to predict and test the outcomes of decisions prior to deployment.

Adjust strategies and tactics based on market dynamics and receive immediate feedback. Earnix modules share critical data so you can develop and test accurate, robust customer models quickly and easily.

Reduce the effort of regulatory compliance. Earnix increases accountability and retrieves the logic behind every strategy, giving organizations the information they require.

6 Earnix Overview The Earnix Team

Our analytics and data science experts are specialists in during the initial project phase to build and test models - in financial services. With hundreds of projects completed, they order to ensure results are being delivered that are in line have become experts in advising on the best strategic uses with initial project goals. Your professional services team of predictive and prescriptive analytics to improve business will advise you on best practices to ensure a smooth and processes. Earnix team-members work side-by-side with you efficient implementation.

World Class Support at Your Fingertips

Earnix support teams operate 24 x 7 — they are always available to address issues that arise as required to support mission critical systems. Our support teams delight in providing exceptional service to our customer base. Our experienced engineers will work with you to resolve any problem quickly.

Analytical Technology that Serves Business and IT Agendas

The Earnix Products can be used offline or integrated After the initial implementation is complete, the actuary or with existing operational systems — and are available pricing analytics professional is empowered to operate the as software-as-a-service in the cloud or through an on- solution without any need for IT or Earnix involvement. premise installation. The solution is enterprise-architected, cloud ready, and works seamlessly with existing administration systems. It interfaces with other systems in a simple fashion using best-in-class IT protocols and advanced programming interfaces.

Earnix Overview 7 Modern Enterprise Architecture: Creating Better Performance and Collaboration

Enterprise architecture provides a simple, scalable, and Management) and ISO 27018 (Protection of Personally secure environment where users across departments can Identifiable Information (PII) in public clouds acting as PII collaborate to make better and faster business decisions. processors). The system is backed up daily, and recovery protocols are met for Business Continuity (ISO 22301 Simple: With quick deployment and easy access to the certified). Recovery plans from both a Recovery Point environment, users quickly create and or modify analytical Objective (RPO) and Recovery Time Objective (RTO) have projects without the need of IT assistance. been established and are met. Earnix’s Network Operations Scalable: With cloud deployments hosted on Amazon Center (NOC) provides 24/7/365 system support and Web Services (AWS), the solution can seamlessly scale as oversight. The environments are constantly checked from a needed while providing a high level of resource elasticity trending and system health perspective. and system flexibility. AWS technology allows for redundancy and resilience as needed. With all of this in place, this architecture thoroughly supports Secure: The Earnix solution, in combination with the the maintenance and audit requirements of the highly AWS platform, adheres to all major international cloud regulated financial industry. security standards and protocols. These enterprise grade security protocols include ISO 27001 (Information Security Earnix Produces Significant Results for its Clients

Earnix clients see concrete results and improvements from the implementation of the Earnix Insurance Suite. Success metrics often include increases in gross written premium, profit, volume and customer retention. Similarly, operational benefits like decreases in time to market are realized. Clients often cite ability to educate, improve internal processes, and advance analytical maturity as auxiliary results to detailed success metrics. Insurance

“Achieved profit-impact of over £5M with no change in retention.” Leading European Bancassurer

“Within the first year, Earnix Insurance improved profit by over 3% of GWP while maintaining retention levels.” Large Direct Broker

“Profit improved by over 1.3% of GWP, without reducing retention. Earnix Insurance achieved highly accurate predictions on the influence of price changes on KPIs. The solution integrated into the overall pricing process.” Leading Personal Lines Insurer

8 Earnix Overview Accelerate with New Features to Stay One Step Ahead

For years, Earnix data scientists, financial experts, and software engineers have been continually improving the Earnix soft- ware with the newest industry advancements. The track record of innovation includes introducing advanced analytical and optimization techniques that are now used by the largest global financial services organizations. Our latest innovations include machine learning and open source integration, improved enterprise architecture, more sophisticated optimization algorithms, and business process automation. The result - even more advanced real-time analysis and decision-making ca- pabilities for financial services product management, marketing, and delivery professionals. Earnix has a long track record of helping organizations take tested and true analytical techniques and infuse them with the newest analytical methods – to scale their abilities and grow their business.

The Machine Learning Integrate Component: Better Accuracy and Decisions

Earnix enables the use of integrated machine learning, and Earnix customers are already using machine learning in turn helps companies achieve more accurate, timely, and models and techniques to inform their analytical projects informative analytical results. Earnix is making industry- and decisions, understand competitor movement at a more leading innovations in the area of machine learning, granular level, and pave the path towards the embracing of including partial to full integration with multiple best-in- deep learning and neural networks in the future. class machine learning libraries, models, and algorithms. Earnix Professional Services Consultants are well versed in The degree of integration you choose is dependent only machine learning algorithms, libraries, and integrations — on your organizational analytic maturity. The result is more as well as how to best use them. With their guidance, any precise and accurate analytical models to produce deeper skill, knowledge, or resource gap can quickly and easily be customer insights. filled. Integration of H2O, a leading open-source data analysis, predictive analytics, and machine learning system, improves the accuracy and insight of models. Integration with XGBoost provides a framework to create more advanced gradient boosted models.

Earnix Overview 9 New Rating Factors Optimization Algorithms

The level of sophistication in analytical optimization that might lead to local maxima – which often can be a projects continues to increase with the introduction problem for standard optimization software. and full productization of the discrete optimization The result of these new algorithms is that more complex solver. The discrete solver optimization algorithm discrete optimization scenarios are now possible, more allows organizations to optimize rating tables that dimensions with regard to monotonicity problems are include multiple variables where the relationship accounted for, and better performance results against between the variables is critical (e.g. monotonic), while more complex data sets are being achieved. maintaining rates at the desired levels of granularity. This algorithm facilitates solving optimization problems with discontinuities, or gaps in the demand function

10 Earnix Overview The Automate Module: Speeding Time to Market

Delivered as a software development kit (SDK), the • Faster, error-free data imports and pricing project process automation function enables you to build creation Javascript projects that automate common tasks, making • Reduced effort by automating complex and the solution more efficient in your environment. Common, repetitive tasks repetitive actions, such as data manipulation, model refitting, and project re-creation or versioning can be done • Ability to share complex scripts and processes with this Javascript enabled console. Using the Automate across lines of business Module results in: • Iteration of analytics, models, and business processes

• Quicker time to market with analytical insights from the Earnix solution.

Earnix Overview 11 Earnix Headquarters HaShachar Tower in Givatayim, Israel is a 57 floor mixed use building. The tower now stands as the third tallest building in Israel and houses Earnix, among many other corporations and residents. Come visit us soon! About Earnix

Earnix provides advanced analytics solutions designed for the financial services industry, which deliver significant results by integrating data-driven decision-making into the business process. We enable financial institutions to better compete in a new environment of highly personalized services by using advanced analytics to determine pricing and other offer components. Our integrated technology platform provides users with the most comprehensive set of tools, including machine learning capabilities, Corporate Headquarters and is often connected to real-time production 4 Ariel Sharon St Giv’atayim 5320045 IL systems. Earnix has extensive experience Tel. +972 3 753 8292 Fax. +972 3 753 8293 providing solutions to the most sophisticated US Headquarters insurers around the globe, and has a track record 191 Post Road West Westport, CT 06880 of empowering executives to act quickly and Tel. +1-203-557-8077 confidently, making a direct and measurable

impact on their key performance indicators. UK Office 23 Austin Friars London, EC2N 2QP www.earnix.com Tel. +44 20 3875 0940

12 Earnix Overview