Quantee

🚗 Is Motor Insurance Pricing in Spain Ready for 2025? The Spanish motor market is shifting — fast. In 2023, the average cost per claim rose by 19.7%. Spare parts? Up 16%. Labor? Up 12%. Bodily injury claims? 14% more expensive. And with combined ratios now hovering above 100%, profitability is on the line. But here’s the bigger issue: most pricing models haven’t caught up. 𝗦𝘁𝗮𝘁𝗶𝗰 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗰𝗮𝗻’𝘁 𝗵𝗮𝗻𝗱𝗹𝗲 𝗱𝘆𝗻𝗮𝗺𝗶𝗰 𝗿𝗶𝘀𝗸𝘀 More than 70% of Spanish insurers still rely on traditional models built around static variables like age, postcode, and vehicle type. These models are often recalibrated just once or twice a year. In a world where risk shifts weekly — that’s no longer enough. 𝗧𝗶𝗺𝗲 𝗳𝗼𝗿 𝗮 𝘀𝗺𝗮𝗿𝘁𝗲𝗿 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵 Innovators are already moving ahead. They’re using: - Telematics to monitor real-world driving behavior - AI to recalibrate models continuously - Usage-based pricing (UBP) to reflect how, not just who, drives - External data to enrich risk segmentation The results speak for themselves: ✅ Up to 25% improvement in pricing accuracy ✅ 20–30% drop in fraud ✅ 10–15% reduction in claims frequency 𝟮𝟬𝟮𝟱 𝗶𝘀 𝗮 𝘁𝗲𝘀𝘁 𝗳𝗼𝗿 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗹𝗲𝗮𝗱𝗲𝗿𝘀 The question isn’t whether costs will keep rising. It’s whether your pricing strategy can keep pace. Modern pricing starts with modern thinking - how are you using data, tech, and insight to future-proof your pricing? #PricingGlobetrotter #Innovation #Insurance #Pricing #Community

Only ca. 6.5% of Mexican households have home insurance. What pricing and product innovations could help close Mexico’s home insurance gap? In a country with 35 million households and 126 million people, the protection gap in home insurance is both massive and persistent. ✔️ Homeownership: 61% ✔️ 90% of homes are underinsured or uninsured ✔️ 52% of workers are in the informal sector ✔️ Just 35% of adults understand basic insurance concepts (CONDUSEF) ✔️ <10% of policies are renewed after the first year The average monthly income is $520 USD, making affordability a key concern. Add fragmented distribution and limited product fit, and it's easy to see why the market remains underpenetrated. From a pricing perspective, this represents a $1.5B USD annual opportunity—but unlocking it requires more than traditional approaches. We need pricing models that are: • accurate despite limited claims history • sensitive to income variation • accessible to underserved segments #PricingGlobetrotter #insurance #pricing #community #underinsurance

Is mandatory auto insurance solving Mexico’s uninsured driver problem? Before 2019, 70% of vehicles in Mexico were uninsured, leaving accident victims financially exposed. To fix this, a federal law now requires all vehicles on federal highways to have third-party liability insurance. 🚗 What changed? Insurance penetration increased, giving insurers better risk data. Competition led to more sophisticated pricing models, including telematics. ⚠️ But challenges remain… Inconsistent enforcement keeps many vehicles uninsured. Many drivers carry only minimum coverage, risking financial exposure. Fraudulent claims are rising, impacting pricing stability. Should Mexico focus on stronger enforcement or new pricing incentives? Has a similar regulation impacted your market? Let’s discuss! ⤵️ #PricingGlobetrotter #insurance #pricing #community

BIG NEWS! 💥 We are thrilled to announce that Quantee has entered into a definitive agreement to be acquired by Guidewire Software Inc.!   This exciting milestone marks the beginning of a new chapter for Quantee. We are stepping up to a new level, unlocking fresh opportunities for Quantee, our customers, partners and the entire pricing community. We strongly believe that combining Quantee’s cutting-edge pricing capabilities with Guidewire’s industry-leading platform will create a unique value proposition for insurers worldwide and help them drive smarter, faster, and more accurate pricing decisions. We are immensely grateful to everyone who has supported us along the way: - Our valued customers, especially those who trusted us and our vision from the very early days of Quantee, - Partners who help us bring our vision to life, delivering the next-gen pricing technology to insurers around the globe, - Our amazing advisors, who have helped us navigate the company through numerous challenges, sharing their business and industry expertise, - The investors, who made a bet on us several years ago and have been extremely supportive ever since. Your belief in our vision, proactive support, and commitment to contributing to joint success have been instrumental to our journey. Most importantly, we’d like to thank all of our current and former team members at Quantee - you simply rock! Your talent, hard work, and dedication have been the foundation of our success. We couldn't have reached this remarkable milestone without each and every one of you!   We're also grateful to the Guidewire team for their trust, recognition, and excitement about what we've built at Quantee. We couldn’t imagine a better partner for the next stage of our journey - there is a strong cultural fit, shared commitment to customer success, innovation, and technical excellence. That being said – it’s just the beginning for us! We’ll relentlessly continue to drive pricing innovation and deliver even greater value to our customers every day!  Expect exciting things to come!    #insurance #pricing #guidewire #quantee 

At this year’s Global Conference of Actuaries (GCA), we had the pleasure of reconnecting with industry peers and strengthening our collaboration with our valued partners from Insyght Analytics —Anurag Rastogi & Varun Jain, FIAI, FIA. The conference provided the perfect setting to exchange insights, explore new opportunities, and reinforce our shared vision for the future of insurance pricing. A huge thank you to the Institute of Actuaries of India, Preeti C. & Sunil Sharma, FIAI. FIAC.Act, for organizing such a fantastic event, Brian Chiarella, FCAS & Frank Chang for joining Scott in the insightful panel on "Actuarial Judgment", bringing key business challenges to the forefront. Our team, represented by Scott Holmes & Mikolaj Skraburski, AIA, had many great conversations—if we didn’t get a chance to connect, feel free to reach out! #GCA25 #IAI #Insurance #Networking #Conference

It's over. Insurtech Insights Europe, supposedly the largest insurtech conference in Europe finished yesterday. Our team, Dawid Kopczyk, FIA, Mateusz (Mat) Gintrowski and Piotr Grodzki, had an opportunity to spend the last two days at the conference meeting with industry peers, chatting with old friends and making plenty of new connections. Plus, as the conference name suggests, it was also a source of many insights into where the industry is headed. We were glad to see that pricing and underwriting became one of the main themes of the conference, attracting a lot of attention and dominating numerous sessions. That strengthens our belief that Quantee will be on the rise in the coming years as insurers are putting pricing at the core of their growth and value-creation strategies. Apart from that, the obvious hot topic was AI in various shapes and forms - ranging from “traditional” machine learning applications to GenAI-driven use cases and AIAgent-based value propositions. It’ll be interesting to observe the evolution of practical implementations and be at the center of that wave of innovation. Last but not least, there was also the fun side of the conference with a number of side events and evening activities which created a space to chat in a less formal setting - thank you Optalitix and Tapoly - Insurance On Tap for hosting amazing events! See you there next year! #insurance #pricing #innovation

Are we over-relying on GLMs in insurance pricing? For many pricing actuaries, generalised linear models (GLMs) are the default choice—we fine-tune variables, test interactions, and optimize every parameter to extract insights. But are we overlooking their limitations? Roberto Rojas Gómez de Terreros in his latest blog post discusses two fundamental issues that can distort pricing decisions: https://bit.ly/4bYIEgq 1️⃣ GLMs assume full credibility A city with only a handful of claims is treated with the same confidence as one with thousands. One large loss in a low-volume region? It can skew the entire pricing structure. ✅ A smarter approach: Credibility models like Bühlmann credibility help smooth extreme results by balancing individual estimates with overall trends. 2️⃣ GLMs assume independent claims In reality, insurance data is rarely independent. Hurricanes, wildfires, and economic shifts create clusters of related claims, yet GLMs treat them as separate events. ✅ A better alternative: Techniques like mixed models help account for correlation and improve pricing accuracy. So, should we abandon GLMs? Not at all—but we must challenge their assumptions, refine them with actuarial expertise, and explore hybrid approaches. The future of pricing belongs to actuaries who combine statistical rigor with real-world intuition. How do you address these challenges in your models? Share your thoughts in the comments below! ⤵️ #insurance #pricing #credibility #blog #GLM #ML

Hurricane Otis: was it a wake-up call for the LatAm insurance industry? 🌪️ Today our journey with 𝗗𝗶𝗱 𝘆𝗼𝘂 𝗸𝗻𝗼𝘄? 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗚𝗹𝗼𝗯𝗲𝘁𝗿𝗼𝘁𝘁𝗲𝗿 𝗘𝗱𝗶𝘁𝗶𝗼𝗻 brings us to Mexico. In October 2023 in just 12 hours, Hurricane Otis intensified from a tropical storm to a category 5 hurricane, leaving behind billions in damages and reshaping the conversation around catastrophe risk modeling in Mexico. But what does this mean for pricing and underwriting? Let’s break it down. 🔍 The numbers tell a complex story Insured loss estimates range from $2.5 billion to $6 billion, depending on the source (Moody’s RMS: $2.5B–$4.5B, Verisk: $3B–$6B). Total economic losses could be as high as $16 billion, with 80% of hotels in Acapulco damaged, along with 16,000 homes and 20,000 vehicles. The underinsurance gap is massive—many affected businesses and homeowners lacked coverage, exposing a systemic vulnerability. ⚡ Risk models under scrutiny: what needs to change? Hurricane Otis wasn’t just destructive—it was unpredictable. The storm’s rapid intensification exposed weaknesses in traditional catastrophe models. This is where AI-driven predictive models and real-time climate analytics could redefine how insurers price extreme weather risks. 💡 The takeaway The industry is at a turning point. With underinsurance issues, shifting reinsurance dynamics, and the need for more adaptive pricing models, how should insurers prepare for the inevitable next Otis? 👇 What do you think? Are traditional catastrophe models keeping up with extreme weather? How can pricing strategies evolve to reflect this new reality? Let’s discuss in the comments! #PricingGlobetrotter #insurance #pricing #community

In our latest post about India in the "Did You Know? Pricing Globetrotter Edition", we return to our roots—highlighting the backbone of insurance pricing: the actuarial community. The Institute of Actuaries of India (IAI) is shaping the future of insurance pricing in that country. From setting actuarial standards to driving innovation in predictive modeling and risk-based pricing, IAI plays a critical role in India's evolving insurance landscape. 💡 How do you see the actuarial profession evolving in India with the growing demand for actuarial professionals? Will AI and data science reshape traditional actuarial roles? Let’s discuss! 👇 #PricingGlobetrotter #Insurance #Pricing #Community

Pricing professionals & enthusiasts! We are happy to share we will host the first UK Edition of the 𝗤𝘂𝗮𝗻𝘁𝗲𝗲 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗠𝗲𝗲𝘁 𝗨𝗽 this June. More details will follow soon... in the meantime, save the date and reach out to Scott Holmes, Mateusz (Mat) Gintrowski, Mikolaj Skraburski, AIA or Dawid Kopczyk, FIA if you have any immediate questions! #QuanteePricingMeetUp #insurance #pricing #community