Hedvig Debuts MLV Model in Collaboration with Google Cloud

Swedish insurtech company, Hedvig, is on a mission to help people spend less time on insurance troubles since the launch in 2018. With a fully digital insurance experience, Hedvig has challenged the traditional insurance industry with a new approach that views customers as members. 

In collaboration with Google Cloud, Hedvig has developed a modern take on the traditional Customer Lifetime Value (CLV) model, turning it into a Member Lifetime Value (MLV) model. The MLV model showcases Hedvig’s commitment to delivering excellent service and building long standing relationships, rather than focusing on the next transaction. 

The MLV model is built with a machine learning algorithm, using transactional data and engagement metrics across every touchpoint with Hedvig. Hedvigs’s take on CLV modeling allows it to be member-centric while staying profitable. By deeply understanding the lifetime value of each member, Hedvig makes smarter decisions connected to marketing, pricing, product design, and customer service to drive profitable growth. 

“As a digitally driven insurance company, it is crucial for us to always explore new ways to enhance the insurance experience. The MLV model is a great example of how Google Cloud can power everything from app features to pricing and marketing efforts. We are eager to continue developing the new model going forward”, says Jonas Billberg, CEO Hedvig. 

The version 1.0 of the model was developed in just a few weeks thanks to Google Cloud’s capabilities for online predictions with Vertex AI, Cloud Functions and BigQuery. 

"We're excited to collaborate with Hedvig, leveraging our scalable cloud infrastructure, GenAI capabilities, and data analytics to enable innovative, new digital insurance experiences", says Maria Wiss, Country Director Google Cloud Sweden. 

Hedvig will be talking about the new MLV model and the collaboration with Google Cloud together with leading cloud data and AI consultancy Datatonic during the Google Cloud Summit in Stockholm on October 10th.