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New Bdeo Deductible Add-On: automatic excess recommendation

01 July 2021 · By Irene Martínez

Your customer is about to renew their car insurance, and realizes that it is no longer the right time to go fully comp.  Their car is getting along in years and they prefer to bring their premium down, but they also want the best cover possible. That’s why they’re considering an excess. So, in this case, how can they get their policy cost? Visual Intelligence is key in helping them and getting them that figure swiftly.  

Bdeo’s technology is capable of recognizing vehicle damage, which makes it possible to generate models that allow the cost of this damage to be determined. Thanks to this, we provide an automatic excess amount recommendation that the insurance company should take into account when approving a specific type of policy. 

What are the main advantages of applying Bdeo’s Visual Intelligence technology to this type of policy recommendation? 

Automatic excess recommendation with Bdeo

Thanks to the automation of a large part of the process, insurers’ manual work is considerably reduced, allowing them to focus on much more specific tasks that require their attention. This streamlines the process and provides a much swifter response to the policyholder. 

Bdeo’s technology, key in calculating vehicle damage

At Bdeo, something we have seen during the process of developing this add-on is that not all companies calculate damage in the same way. There are three general ways of doing it: the entire car; splitting it into sides and roof; and diagonally. 

We have developed our product to be able to calculate damage to a vehicle according to the company’s system, adapting the platform to its needs. 

How do insurers calculate the excess on a motor policy?

The entire car

The company carries out a cost estimate of all visible damage to the vehicle, obtaining the total amount that will set the compulsory excess allowed for the policyholder. An additional margin is added so that the policyholder bears the cost of repairing the damage. In this case, if we take an example where the total damage is €425, the excess will be €450.

Sides and roof

For this calculation, the company breaks down the vehicle into five sides: the four sides of the vehicle plus the roof. 

At Bdeo, we are able to differentiate up to 35 pieces that are included on each side, so we analyze each of the parts and add up the total for each of the five sides mentioned. 

For the calculation of the excess, the side with the highest amount calculated is taken into account and it is used to set the compulsory excess. For example:

  1. Front end: €50

  2. Driver’s left: €350

  3. Driver’s right: €250

  4. Rear end: €130

  5. Roof: €0

In this case, the excess will be set at over €350, which is the side of the vehicle with the highest damage value.

Diagonally

For this calculation, the company analyzes the vehicle and divides it into two diagonally. This is not a fixed diagonal. Rather, it depends on the location of the damage present when the analysis is done. 

To visualize it more clearly, we will use the example of an L. That is, the parts of the vehicle will form an L shape if we were to view them from above. So, the analysis could take into account the rear end and driver’s right on the one hand, and the front end and driver's left on the other. For example: 

  1. Front end: €100

  2. Driver’s right: €30

  3. Driver’s left: €0

  4. Rear end: €200

To calculate the excess in this case, the previous amounts are added together using this system. Therefore, it cannot be between the front end and the rear end, nor between the driver’s left and driver’s right.

  1. Rear end + driver’s right = €230 

  2. Front end + driver’s left = €100

In this case, the compulsory excess is €230.

As you can see, calculating an excess is not always straightforward. What’s more, having up to three ways to calculate it makes it no easier. This is why providing companies with the option to calculate the excess through Visual Intelligence technology is a great revolution. It allows them to focus their agents’ efforts and allow them to concentrate on what is really important: offering the best experience to policyholders.

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