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Customer Story

AXA Direct Assurance Increases Its Growth Rate and Employee Productivity With MLOps

Xebia helps the French insurance provider speed up pricing optimization by setting up MLOps best practices and automating model retraining.
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Related Services
Azure Databricks, Azure DevOps, MLflow 

Industry
Insurance

Company
Xebia Data

AXA Direct Assurance is an online branch of the global insurance provider and asset management company AXA. Direct Assurance focuses on the French market and provides home, vehicle, health, and legal insurance.  

It was founded in 1992 and has always looked to provide simpler, faster, cheaper, and more transparent insurance. Its employees offer expert legal support tailored to their customers every day.  

Why
Direct Assurance needed to enable up-to-date price predictions to maintain their customer conversion rates for home insurance while shortening model development cycles.
What
Xebia partnered with Direct Assurance to automate and accelerate model retraining and establish MLOps best practices.
How
The two organizations worked together to create a reproducible and traceable pipeline for (re-)training home insurance price optimization models on the Databricks Platform, setting up experiment tracking and data and model versioning with MLflow.

The Previous System   

AXA Direct Assurance’s data science team is responsible for modeling competitive prices for their insurance products. The exact value depends on the type of customer and object to be insured and is calculated using multiple machine-learning models. In the competitive insurance market, it is crucial for AXA to update its models frequently to incorporate market and behavior changes. If the model is outdated, the pricing can be too low (causing the company’s revenue to decline) or too high (risking losing customers).  

Direct Assurance aims to automate and industrialize its pricing models by 2026 to increase responsiveness to market changes and save time for all technical direction (DT) teams. 

The repricing process currently followed by most DT teams is largely manual and labor-intensive. While the teams are successful in bringing models to production, this requires long iterative cycles and many hours spent identifying and resolving errors in notebooks and data sources. This process also results in handover issues. Streamlining this process would allow Direct Assurance teams to free up resources for innovative projects. 

To identify gaps in the current working process, skills, and technology, to test different solutions, and to establish the best practices that can be followed by all data DT teams, AXA launched an MLOps improvement project for its home insurance team. 

MLOPs is the most crucial innovation that will enable our pricing to reach the next level of precision. 

Xebia experts Nelli and Jeroen played an instrumental role in launching this project for Direct Assurance. Challenging the initial implementation choices we had made, structuring the ML pipelines and setting up the proper quality standard.
unnamed
Jérôme Lafon Directeur Technique

The New Approach  

Xebia’s consultants Nelli Gofman and Jeroen Overschie partnered with Direct Assurance professionals to set up an MLOps platform for their home insurance pricing team. To improve the current process, they prioritized three axes: 

  1. Code development and quality – to improve code robustness with best coding practices and tools.

    Moving from Jupyter notebooks to Python code that can be tested, and that people can understand and execute themselves, increased productivity and minimized handover issues. Quality is ensured by setting up a CI/CD pipeline that executes unit and integration tests and formatting and linting checks. 
  2. Code execution automation – to allow automatic code execution with improved traceability, transparency, and lineage of the process. 

    The team focused on automating the process, all the way from collecting data to the final production model.  All data extraction and model training pipelines are implemented as Databricks jobs and run on designated job clusters. The pipeline jobs themselves are defined using versioned JSON files, allowing automatic replication/repair when accidentally destroyed, and environment management.
  3. Data, experiment, and model tracking – to enable automatic tracking of data and model versions to facilitate reusability and reproducibility of results.

    Nelli and Jeroen helped Direct Assurance set up MLflow tracking and a data versioning workflow. Each Databricks job is given a unique identifier that is propagated to data sources as version ID, stored as metadata in the MLflow experiment, and connected to the model version. Each model is logged to the model registry in MLflow, which allows metrics across different models to be easily compared and the best model promoted to the production environment. This allows the data team to track how different changes in the model parameters or in the data affected performance, and to reproduce past results.  

Apart from the points mentioned above, Direct Assurance was explicitly interested in measuring potential business gains that automatic and more frequent retraining of the models would bring. 

“I am today confident that we have the right foundations to move our 100+ ML models from notebooks to industrial-grade MLOPs pipelines.”

Jérôme Lafon, Directeur Technique at AXA Direct Assurance.

The Final Results 

Because the models can be retrained quickly, AXA Direct Assurance can now offer updated prices much faster. The first results suggest that AXA can expect to bring in more new customers than before. The growth rate for new customers is expected to increase by 33% when using the new system compared to the old one.  

There are also clear indicators that AXA can achieve additional productivity gains resulting from the best practices created and the ease of use of the new system. While senior data scientists are systematically faster than junior roles, both profiles are expected to experience a similar improvement. The time to update models is expected to decrease by at least 28% for junior professionals and 30% for seniors, meaning everyone will benefit significantly from the new structure.  

If you would like to learn more about how to reap the benefits of MLOps in your company, check out our latest whitepaper on the subject. And if you feel you are ready to implement MLOps, have a look at our tailored-to-fit Xebia Base MLOps Platforms.  

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