Open Lending, a provider of automotive lending enablement and risk analytics solutions, has teamed up with insurtech company Akur8 to improve its predictive lending model.
The collaboration aims to strengthen Open Lending’s proprietary Lenders Protection platform, offering enhanced risk analytics for its clients across the US.
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Akur8’s solution is expected to improve the speed, accuracy and transparency of the Lenders Protection platform.
The integration of Akur8’s predictive insurance pricing models is projected to augment Open Lending’s existing risk model, which is capable of analysing nearly two million borrower risk profiles and deliver decisions in five seconds or less.
Open Lending said that this partnership is set to empower its customers to adapt swiftly to dynamic market conditions and safely grow their automotive lending portfolios.
This is crucial as customers strive to offer competitive pricing and tap into higher-yield opportunities, especially for near and non-prime borrowers who face vehicle accessibility challenges.
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By GlobalDataAccording to Open Lending’s 2024 Vehicle Accessibility Report, 25% of these borrowers are now paying more than $600 monthly for used cars purchased in 2023, a significant increase from 8% between 2020 and 2022.
This has further resulted in pushing financial institutions to switch to data-driven decision-making tools for better assessment of borrower creditworthiness and to manage risk, the company noted.
Open Lending chief revenue officer Matt Roe said: “The addition of Akur8’s predictive modelling expertise to our over 20 years of industry experience and AI-powered Lenders Protection solution will allow our customers to address market dynamics faster and more effectively meet the ongoing needs of today’s borrower.
“This partnership also furthers our mission to expand vehicle access to more deserving borrowers and, in doing so, help our clients unlock new revenue opportunities.”
With a presence in more than 40 countries, Akur8 caters to more than 100 customers including industry giants like AXA, Generali and Munich Re, and over 900 actuaries worldwide.
Akur8 also offers various pricing solutions in the non-life insurance segment, such as its Transparent Machine Learning technology for enhancing insurers’ pricing processes with speed and accuracy.
In November 2023, Akur8 collaborated with hyperexponential to support data-driven speciality and commercial pricing for insurers.
