We work with world leading insurance companies to increase their profits by identifying and reducing inconsistency that occurs in underwriting teams’ decision-making.

Unfortunately, humans are not always the rational decision makers we wish ourselves to be. Often, judgments are strongly influenced by irrelevant factors, such as our current mood, time since the last meal, and the weather. We call this chance variability of judgments noise. Noise is often an invisible but significant tax on the bottom line of companies.

Noise is most present where we are expected to make judgment calls based on experience and general principles, and no completely rigid rules apply. For example, in the case of underwriting and pricing decisions. Firms whose employees exercise judgment do not expect decisions to be entirely free of noise, especially if underwriters work in different offices and teams. Often, however, noise is far above the level that executives would consider tolerable but they are completely unaware of it.

We work with senior leadership and their teams to identify levels of variance across decisions, determine whether they are acceptable, and work to reduce unacceptable variabilities using a range of methodologies. Our methods include employing algorithms to minimise problems where possible and approaches designed to make processes more structured and profitable.

“Where there is judgement, there is noise – and usually more of it than you think.”

– Daniel Kahneman


Insurance Advisor Board

Nick Hoffman

Nick is a former partner at McKinsey’s where he led the firms Insurance and Asset Management work in the U.K. and the P&C Commercial Lines work in Europe.

His extensive experience in client services includes support to insurers and asset managers in the UK, Europe, US and Asia. Nick has played a critical role in developing our approach and working with clients to reduce bias and noise in their decision making.

Linnea Gandhi

Linnea is an Adjunct Assistant Professor of Behavioural Science at the University of Chicago Booth School of Business. She also runs BehavioralSight, an advisory firm helping professionals to integrate insights and methodologies from psychology and statistics into their decision-making strategies. Prior to this, Linnea was a Managing Director of TGG Group where she developed behaviourally-informed tools and experiments for clients across financial services. She has also been a consultant for the Boston Consulting Group. Linnea works on the topic of noise, and has done so together with Daniel Kahneman for five years. Her academic collaborators also include Nobel Laureates Richard Thaler.