It’s a frustrating problem most of us have encountered: applying for a service online, only to be denied because of unfair assumptions or opaque biases baked into the system. One example is with insurance policies, where applications are automatically rejected if they hit certain generic reasons, leading to opportunity costs and reputational damage for providers when customers take to social media to vent their frustrations.
As an increasing number of consumers compare products online, powerful new analytics technology is enabling insurers and lenders to make new discoveries about their customers and their needs. At the forefront of these world-changing innovations is Logical Glue, the Shoreditch based start-up that is harnessing the power of explainable artificial intelligence to enable insurers and lenders to accept more customers, whilst minimising risk.
Using rigorous data analytics, the ready-to-use business solution draws on previously unrelated data sources to discover deep insights that give a more holistic view of customers, enabling companies to make decisions that tailor financial products more specifically to customer needs. For example, Logical Glue makes it possible to see whether changes to a customer’s behaviour can reduce their risk and give a better chance of approval. The platform is therefore helping lenders and insurers with a range of tasks: from credit decisions and underwriting processes through to automating client interactions.
Logical Glue is the first company to offer white-box machine learning in a manner that is intuitive and user-friendly
“Our platform is generating more business of a higher quality; helping insurers increase acceptance rates by 40% and increasing profits by 5-20%,” commented Jim Duffy, CEO of Logical Glue. He continued: “Our Business Insight Platform not only predicts an optimal business decision, it also explains why the action should be taken; this is what places Logical Glue ahead of our competition. By empowering insurers and lenders to tailor their customers’ journey, we’re helping them make more transparent decisions faster. This drives more value whilst generating fairer insurance premiums. Consumers are more satisfied having received a personalised experience.”
Whereas previously an individual could be rejected from a loan due to a systematic bias, Logical Glue enables more transparent and interpretable assessments, leading to more accurate pricing. In a digital economy that is increasingly adapting to the individual’s needs, the company says that drives competitive advantage.
Bob De Caux, Chief Product Officer, explains: “Logical Glue is the first company to offer white-box machine learning in a manner that is intuitive and user-friendly.” He says: “Our clients are winning new business because customers are able to access financial products on a fairer, more personal, basis. The key is to help executives at all levels of a company make more accurate decisions.”
The Logical Glue Business Insight Platform strictly adheres to relevant protocols on data privacy and cybersecurity and helps enterprises with their GDPR compliance by removing black-box decision making. Tailored and accessible, the platform is easily integrated by customers, who once on boarded quickly see transformative results, typically achieving ROI within six months.
Logical Glue is currently focused on insurance and alternative lending markets. However, there are plans to expand into other industries and global markets. Jim Duffy says: "With our unique modelling techniques we see also opportunities to help the gaming, telecoms and public sectors redesign their products/offerings and create new business models by uncovering new insights into their data. It’s an extremely exciting time."