In a first for Turkey’s insurance industry, Neova Sigorta is introducing AI-powered pricing for auto insurance, promising fairer premiums for up to 95% of its customers. Collaborating with data analytics giant SAS and SAS partner Sade Software & Consultancy, this initiative is poised to benefit both policyholders and the insurer’s bottom line.

By switching to advanced machine learning (ML) algorithms, Neova Sigorta aims to optimise premium pricing, saving money for customers while increasing its competitiveness in the market. The move signals a shift towards more accurate, data-driven insurance practices in the region.

Why This Matters

Traditionally, auto insurance pricing relied on generalised linear models (GLMs), which, while easy to understand, often resulted in less accurate estimates due to data limitations and biases. The result? Higher premiums and missed opportunities for insurers to attract or retain customers.

Neova Sigorta’s adoption of SAS Dynamic Actuarial Modeling replaces outdated methods with modern ML algorithms that can analyse complex customer behaviours and detect granular patterns in real-time. This not only ensures fairer pricing but also addresses customer dissatisfaction with traditional pricing methods.

What’s Changing for Customers

Neova Sigorta’s deployment of SAS’ ML-based platform is expected to:

• Offer more appealing premiums to both new and existing customers.
• Improve renewal rates in established markets while expanding into new regions.
• Deliver tangible savings for customers through fairer, data-driven pricing.

Neslihan Neciboğlu, Neova Sigorta CEO, stated: “In our business, we always prioritise customer comfort and satisfaction above all else, and we know that affordable premiums are one of the main factors that contribute to customer happiness and retention.”

A Game-Changer for Turkey’s Insurance Market

This six- to eight-month initiative also positions Neova Sigorta as a trailblazer in the Turkish insurance sector. By modernising its pricing strategy, the company is expected to:

• Increase market share by up to 15%.
• Reduce the insurer’s combined ratio by 10%.
• Set the standard for AI adoption in insurance across the region.

Deniz Çelik, SADE’s co-founder, commented: “The machine learning-based pricing project with Neova Sigorta and SAS is of special importance to us, as it is one of the first and finest examples in the region.”

The Broader Impact

As inflation and economic turbulence push consumers to seek affordable insurance options, insurers who fail to adapt risk losing customers and market relevance. AI-powered pricing models, such as the one adopted by Neova Sigorta, provide a competitive edge while delivering better outcomes for customers.

Stu Bradley, Senior Vice President of Risk, Fraud and Compliance Solutions at SAS, highlighted the importance of this transition: “Switching to a modern, machine learning-based approach with real-time decisioning capabilities will greatly improve an insurer’s bottom line. Making these decisions in a trustworthy and transparent way is critical to ensuring satisfied customers.”

As Neova Sigorta embraces AI to reimagine the insurance experience, it’s paving the way for greater transparency, affordability, and innovation in the Turkish insurance market.