Getting Data into Insurance and Using it Right with Max Drucker, Co-Founder and CEO of Carpe Data

Originally published by Coverager on January 16, 2024.

Max Drucker, CEO and Co-Founder of Carpe Data, joined Jason Reichl on the Risk Management: Brick by Brick podcast at InsureTech Connect 2023 to discuss the evolving role of data in insurance. The conversation centered on the dual challenges of introducing next generation data to the industry while ensuring carriers understand how to deploy it effectively within their existing workflows.

Drucker emphasized the importance of purpose-driven data implementation rather than accumulation for its own sake. He warned that the insurance industry risks becoming overwhelmed by data without clear use cases. "We make it explicit, this is how you use this data, " Drucker explained, adding that approaches focused on "data for the sake of data, or AI for the sake of AI" ultimately produce noise rather than value. Carpe Data addresses this by showing clients precisely how each data element helps avoid adverse selection, prioritize quality business, and improve outcomes.

The discussion also explored barriers to technology adoption in insurance. Drucker noted that while events like InsureTech Connect demonstrate growing openness, many carriers remain hesitant to alter established processes. He advocated for providers to work closely with carriers on integration rather than simply delivering new tools. Drucker predicted that as more carriers successfully use data to avoid bad risk, the performance gap with non-adopters will become stark enough to accelerate industry-wide change.

Read the full article at Coverager.