FICO & dacadoo partner on life insurance risk assessment

FICO and dacadoo have established a partnership aimed at enhancing flexibility and precision in life insurance risk assessment for insurers.

The agreement will see dacadoo integrate FICO's artificial intelligence, analytics, and decision management tools from the FICO Platform into its health risk quantification engine. This integration is intended to provide insurers with more precise and personalised risk assessments for applicants, supporting their efforts to better align policies and pricing with individual customer profiles.

Peter Ohnemus, President and Chief Executive Officer at dacadoo, stated, "We have brought to market an innovative solution that enables insurers to target their life insurance products at specific profiles. Through our new partnership with FICO, insurers will be able to use more dynamic data to assess the risk of each applicant, and to design highly personalized insurance products for their customers using advanced decision science. They can use the FICO capabilities to enhance their own risk modelling and create more complex decision trees. We are giving insurers a whole new level of risk assessment precision to help them build their portfolio."

The integration seeks to facilitate a shift for insurers away from traditional, static underwriting models in favour of a dynamic, behaviour-based approach. This transition is positioned to help reduce operational costs, improve risk management, and strengthen customer engagement and loyalty.

Key capabilities expected from the collaboration include hyper-personalised risk scoring and underwriting, behavioural engagement and wellness-driven policy models, real-time decision-making for claims and onboarding, and predictive modelling for claims, policy lapses, and customer lifetime value.

Estimates from the two companies suggest that insurers utilising the combined solution could realise a 20–30% increase in customer lifetime value through personalisation and engagement, in addition to a 30–50% reduction in underwriting time as a result of automated, real-time decision-making processes.

Alexandre Graff, Vice President for Global Partners and Alliances at FICO, commented, "We see the dacadoo platform as a game-changer. It not only helps insurers grow their business responsibly, it helps people better manage their health through the digital health engagement platform. We see tremendous opportunities to infuse FICO's expertise in AI and decision management into dacadoo's platform and create a better outcome for insurers and individuals."

The partnership is aligned with broader industry trends, as over 80% of insurers have identified the improvement of underwriting and customer experience as critical business priorities.

dacadoo, based in Switzerland, provides digital health engagement and health risk quantification technology solutions, including a platform available in over 18 languages. Its risk engine, which calculates real-time relative risk for mortality and morbidity, is also available to clients globally.

FICO, with a long history in analytics and data science, supplies solutions for operational decision-making to businesses in numerous sectors, including insurance, financial services, healthcare, and telecommunications, across more than 80 countries.