Porto Seguro strengthens credit risk with AI-based solution from Brighterion
One of the largest Brazilian insurance companies, Porto Seguro, has implemented an AI and machine learning-based credit risk solution from Mastercard company, Brighterion. It is the first Brazilian taker of the solution.
Brighterion’s AI for Credit Risk solution is intended to determine credit risk earlier in the customer lifecycle, identifying opportunities for offering higher credit limits.
Within a ten-week project, the AI technology was combined with Porto Seguro’s existing analytical expertise to build high-performance models.
Sudhir Jha, head of Brighterion and senior vice president at Mastercard, says AI models have enabled the insurer to manage credit risk more effectively while improving customer experience.
The project saw Brighterion develop a custom AI model through a collaborative programme, AI Express, using a combination of proprietary tools including its Smart Agents technology.
“This AI model could be run on transactions from any card network,” says Ricardo Kaoru Inada, executive director of Porto Seguro, which also issues branded credit cards.
“Almost 50 per cent of potential defaults were identified 70 days in advance in the pilot phase of the project, which helps us increase credit limits for our customers through a more assertive analysis.”
Porto Seguro is based in São Paulo and has 14,000 employees and 15 million customers.
It operates through its subsidiaries in Brazil and Uruguay, offering car, residential, health, life, and business insurance, with the consortium also providing pensions, savings bonds and other financial services.
Brighterion was founded in 2000 and was acquired by Mastercard in 2017. It claims 74 of the 100 largest US banks as customers and has more than 2000 customers worldwide.