Case Study: Pekin Insurance achieves model-driven pricing and 15–20% auto loss-ratio improvement with Guidewire

Pekin Achieves Model-Driven Pricing Through Analytics

Pekin Insurance, a regional insurer founded in 1921 that serves customers across 24 states, faced mounting pressure from digital, direct-to-consumer, and AI-driven market trends. Despite launching a modernization program (PIVOT), Pekin’s auto business was suffering significant losses because underwriters lacked centralized data and robust analytics for accurate risk analysis and pricing.

Pekin implemented Guidewire’s InsuranceSuite with Live Predict and HazardHub Casualty to centralize data and deploy predictive models outside the core system. The change delivered rapid results: Pekin reversed its auto loss ratio by 15–20% in the first year and has since maintained a 10–15% improvement, achieved better risk selection, faster model deployment (2–3 months vs. 12–18 months), and measurable lift in workers’ compensation and commercial auto underwriting.

Pekin Insurance

Amy Bingham

Chief Information Officer and Vice President