Traditional big data techniques often fall short in small business risk evaluation, due to limited online data. Explore the unique challenges of small commercial underwriting and how NeuralMetrics is addressing them with tailored solutions.
Solution providers frequently attempt to expand their business by repurposing technology and big data solutions originally designed for large commercial policyholders and applying them to small businesses. This strategy often results in failure, prompting providers to withdraw from the small commercial insurance market. But why does this happen?
The core issue lies in underestimating the intricacies of developing AI-powered data access solutions for small commercial enterprises. Paradoxically, automating small commercial underwriting can be more challenging than addressing the needs of larger businesses. In essence, small commercial underwriting faces a small data problem. These businesses often have limited online presence, making it a significant industry challenge.
For instance, your neighborhood ice cream shop or the local hobby store might only have a meager online presence, consisting of a single social media page and a sparse website. Moreover, each small business is unique, with no two being exactly alike. The conventional patterns that big data AI solutions rely on prove unsuitable for these small datasets, leading to inaccuracies in classification and risk assessments.
NeuralMetrics understands these challenges intimately. We have developed a solution tailored to access limited data and provide precise underwriting insights within seconds. Our approach adds transparency and reliability indicators to the data, allowing carriers to trace back and understand why a particular question was answered in a specific way.
In the world of small commercial underwriting, off-the-shelf big data AI techniques fall short. Small businesses, with their limited online presence, demand a diverse range of AI techniques to gather and present relevant data for small commercial insurance. NeuralMetrics is committed to delivering a data solution that significantly enhances small commercial underwriting—accurately, transparently, and in real time.
Read this article by NeuralMetrics technical co-founder Marcus Daley in Coverager to learn more.