ERGO AI Factory - Insurer Innovation Award 2022

1. ERGO Digital Ventures, ERGO Technology & Services
Breaking New Frontiers
for Insurance with ERGO AI Factory

2. Strictly confidential
Current core capabilities Benefits of Factory Approach
About
ERGO AI Factory is a modular cloud-based solution for state-of-
the-art AI Model Development and the enabler for model operationalization
and near real-time integration into existing business processes
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Scalability
Keeping pace with changing workloads and growing demands on AI
and data preparation
Speediness
Faster end-to-end implementation through best practice and
standardisation
Cost effectiveness
Avoidance of high upfront costs and use of reproducible solutions
Flexibility
Combining modern data science technologies with a professional IT
approach
Integration
Modern IT standards for integration into any production environment
Adaptability
Mastering heterogeneous processes and data landscapes while at
the same time ensuring compliance
Modularity
Modular approach with state-of-the-art open-source tools, yet
"developer-friendly"
https://aws.amazon.com/de/blogs/architecture/ergo-breaks-new-frontiers-for-insurance-with-ai-factory-on-aws/

3. Strictly confidential
Global Delivery
Business Sponsors Tech-Hub
Rolf Mertens
Head of Advanced
Analytics
Felix Wenzel
Head of Data
Engineering
Marco Röhrle
Head of Artifical
Intelligence
Dr. Jan Huntgeburth
Head of Delivery,
Digital
Christian Kundruss
Program Manager,
Advanced Analytics
Paweł Bulowski
Senior Project Manager,
Digital AI&Data
Kris Krzosek
Delivery Director,
Digital AI & Data
Michał Denka
Senior Project Manager,
Digital AI&Data
Alexander Valkov
Head of Technology
ET&S
Piotr Stroiński
CloudDev Director,
Data&AI
Robert Meisner
Lead Product Owner,
Data&AI
Dariusz Teperek
Engineering Director,
Data&AI
Daniel Wileński
Domain Test Manager,
Data&AI
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Alexander Haag
Head of
AI Platforms
… is an agile, cross-functional,
culturally-diverse team of
professionals enhancing and
exploiting the capabilities of the
platform
• Data skills
• Technology skills
• Language skills: English, German,
Italian, Ukrainian, Russian, and
Polish, French, Spanish
• Locations: Düsseldorf, Nürnberg,
Warsaw
Website: http://ergo.com/aifactory
About
ERGO AI Factory

4. Strictly confidential
Features
Helps data professionals in model development and improves
the analysis & processing of large amounts of data
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5. Strictly confidential
Features
Model operationalization leverages the full power of sophisticated
machine learning solutions and enables near real-time integration into
core insurance systems (e.g. mainframe) and business processes
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6. Strictly confidential
Why cloud? Technologies we use
Features
The underlying cloud platform provides a fully managed
infrastructure that scales automatically, integrates with latest data
technology and comes equipped with many built-in optimizations
Costs
Pay-per-use model eliminates the need to invest
in expensive physical infrastructure, large up-front
license costs and ongoing maintenance fees. It
eliminates overcapacity and wasted computing
resources
and makes it easy to access more sophisticated
capabilities without the need to bring in new
advanced hardware.
Security
Monitoring is a critical component of cloud security
and management. The platform relies on cloud
monitoring solutions and on-premise infrastructure
to detect security threats and anomalies of
deployed services, models and underlying
infrastructure
by continuous assessment and measurement of
behaviour.
Speed and consistency
Consequently following the design paradigm
of infrastructure as code enables a safe, efficient
and controlled setup of components. Deployment
of new workspaces for data professionals becomes
a repeatable and consistent procedure.
Efficiency
Using cloud-services facilitates model building
and training by providing pre-build and configured
development environments and implementations
of open-source algorithms.
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7. Strictly confidential
Insurance Use Cases
ERGO AI Factory wasn't built in a day. We have the AI methods and
technologies under control. Now we take care of the industrialisation
Predictive
Analyses
Prescriptive
Analyses
Setting up the Big Data
infrastructure
(on-premise)
Artificial
intelligence
Advanced methods
for data provision
Development
& Operationalisation
of AI Models (Cloud)
Focus on
insurance
use cases
AI-Factory
scale and
industrialize
advanced
analytics
Technology & Infrastructure
Business priorities
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8. Strictly confidential
Insurance Use Cases
ERGO AI Factory enables the training of large amounts of documents (e.g., 8 Mio.
documents) and thus, development of highly precise AI models that exceed
performance of COTS AI solutions. Higher recognition rates enable higher
business benefits.
Starting Point Experiences and insights
Data
preparation
Modelling
Procurement of approx. 4 million data Merging / pseudonymisation Feature engineering
Document data from scheduling and operational
systems
#
Dimension reduction for diagnoses / treatments State-of-the-art AI Methods Transfer to performance testing
Richtige
Aktion
Modell Schätzung
# Dokumente dunkel hell
Vollständig zahlen true positive false positive # Dokumente
Teilweise zahlen false negative true negative # Dokumente
# Dokumente # Dokumente Σ
Diabetes E11 E66 I10
Diabetes E11 I12 I10 E14.75
… J45 L40 F33
76.41%
93.54%
85.96%
11.88%
6.55%
10.06%
5.93% 7.41%
0%
20%
40%
60%
80%
100%
Rule-based system ERGO AI model COTS* AI
Correct (certain) Correct (uncertain) Not recognized Incorrect (uncertain) Incorrect (certain)
Example document classification
ERGO AI Factory enables the development
and operationalization of own AI models
COTS* providers have started to build “AI features”
in already existing COTS products
ERGO AI model increases the recognition rate, reduces the error rate
and enables a higher level of automation compared to a traditional
ruleset approaches or COTS* AI
COTS*: Commercial off the shelf software 8

9. Strictly confidential
Insurance Use Cases
ERGO AI Factory enables health claim use cases which significantly
reduce manual efforts in processing health claims and speed up the
process for the customer.
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near real-time AI Integration Business benefits
Old world:
• Operations are triggered by rule-based systems to staff to change / add data
or manually check operations
• Many outs could be avoided as there are only a few interactions that add value
New world:
• Calling AI through near real-time integration into existing service accounting
processes
• Existing systems can continue to be used consistently and performance can be
raised to a new level
• Number of potential manual processes is reduced
• Staff can concentrate on relevant checks
Machine processing
Manual interaction
Rulebook
Check for
completeness
Technical
plausibility
check
AI operationalisation environment
One use case
One use case
Data
Orchestration
Service
Model Scoring
Service
Trained
model
Staging
data set
Data
Ingestion
AI Services
(z.B outpatient
medical billsa)
ERGO
data
seven-digit number of
claims per year
Reduction of six-digit
number of unnecessary
outs per year

10. Strictly confidential
Insurance Use Cases
ERGO AI Factory enables an AI-based e-mail classifier who
automatically reroutes e-mails based on content. Several use cases
have increased speed of processing request and STP ratio.
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Before After
Impact
• Faster processing of customer requests.
• Increased efficiency due to reduction of time spent on
irrelevant e-mails.
• Cost reduction due to increased straight through processing
(STP) ratio
Starting Point
• Many wrongly routed email delay processing of customer
requests
• Employees spend a lot of time to process on irrelevant
e-mails.
• Low level of straight through processing, high manual effort

11. Strictly confidential
Insurance Use Cases
ERGO AI Factory’s next extension is an Analytical Content Hub
delivering as a first use case a global wording repository that
facilitates work of underwriters across the group
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ERGO AI Factory enables
Global Wording Repository
ERGO AI Factory Analytical Content
Hub
Business
Unit / IT
Business
Process
User Portal
Local
Repositories
ERGO AI Factory Model Development
Environment
ERGO AI Factory Operational Environment
Extraction Service
Classification Service
Translation Service
Model
Development
Data
Preparation
Data Ingest
API Calls
User Interaction
Voice-to-Text
OCR
Search
Redirect to
AI Service
from AI
Ops
Document
Comparison
Business
User
Storage
Raw
Data
Text
Data
Meta
Data
Search
Index
Global Wording Repository UI
Metadata
Search
Full Text
Search
Edit
Metadata
View & List
Files
Labelling
File Upload
ACH
Functions of repository Benefits for ERGO
Optimization of risk control
Potential risks will be identified earlier
and mitigation measures will be done
immediately
Better underwriting decisions
If we identify unwanted/ hidden risks in
one product, we will easily check
whether other products are also
concerned and change them in the
next product update/ renewal
Higher standardization
Use of benchmark clauses in
consideration of country-specific
regulations and re-usage of good text
or clauses
Increase in efficiency
We become faster towards the market
(product development) and in our
internal decision making (changes in
conditions)
Central storage
Global access
Reports
Wording comparison
Context-based search
Automatic translation
Clause libraries

12. Strictly confidential
Insurance Use Cases
ERGO is transforming to an insurtech company, potentially offering
AI Factory across our group and to other primary insurers around the
world
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Use Case enabled by ERGO AI Factory
have generated significant annual savings
Systematic use of advanced analytics,
to achieve added value along the entire value chain
Product
Design,
Pricing
& Sales
Claims /
benefits
Customer
Management
Service /
Operations
Competitive advantages
through advanced analytics
Under-
writing /
Risk Mgmt
Operationalization
of Use Cases
• 21 Use cases productive, 8 Use
cases with predicted go-live in 2022
• Significant savings generated in
customer management, claims /
benefits, as well
as service / operations
• Use cases in underwriting / risk
management and pricing in
progress
ERGO AI Factory
• Cloud-native ERGO AI Factory
platform completed
• New features in the pipeline:
• Analytical content hub
• Common usage of OCR
• Labelling of training data
• More sophisticated dashboard
for reporting purposes
If you interested in collaboration or cooperation, get in touch with us!