Sikka.ai with Jacob McGraw | E287

Alternative data from dental offices.

Jason talks to Jacob McGraw from Sikka.ai, a fintech company specializing in API platform services for dental support organizations (DSOs). DSOs are large firms that operate numerous dental practices. Jacob discusses Sikka.ai’s innovative underwriting methodology for insurance companies and explains the company's value proposition. 

Episode Highlights 

  • 01:00: Jacob explains the operations of Sikka.ai The company collects data from dental practices to underwrite life insurance applicants. 

  • 02:28: Jacob explains the origin of Sikka.ai and its focus on serving dental support organizations (DSOs). The company's founder, Vijay Sikka, started CA I TIKA in 2004 when his wife, a practicing dentist, faced challenges in managing the day-to-day elements of running her dental practice.

  • 03:13: The company's API platform integrates with over 92% of the practice management systems used by these dental clinics, making it easier for DSOs to manage their operations.

  • 04:12: Underwriting involves a questionnaire and, in some cases, fluid tests like blood and urine tests. More advanced applications might require additional tests.

  • 04:45: Jacob highlights the power of taking data from oral health practitioners since oral health often serves as an indicator of other medical issues.

  • 06:22: Oral health is a powerful indicator, and even individuals who previously neglected their dental care can quickly improve their oral health and overall health.

  • 07:12: The current reliance on self-reported information in traditional underwriting can lead to inaccuracies and misclassifications. With Sikka.ai’s dental data integration, these issues can be addressed, leading to a more accurate assessment of risks, especially related to smoking habits.

  • 08:56: Jason and Jacob discuss how the fear of rejection has created a negative stigma around insurance applications.

  • 09:28: Jacob McGraw discusses the risk model used by Sikka.ai, which he finds fascinating due to his background in data. He explains that the model involves the life expectancy at current age and the periodontal disease mortality score, which are based on the American Social Security Master Death Index.

  • 10:50: Jacob provides a practical example of how the risk model is used to differentiate risk within different preexisting conditions.

  • 12:36: Jacob acknowledges that getting insurance carriers to adopt new data sources can be challenging, given the industry's resistance to change and the need for thorough testing to ensure regulatory compliance.

  • 14:59: Jacob explains that the main advantage of their dental data integration is speed, as it allows forgoing more expensive and invasive tests like cotinine tests.

  • 17:10: The real-time data sources and API platform provided by the company are relatively new and novel to insurance companies, which are typically not accustomed to real-time processes.

  • 18:24: The company is currently focused on dental insurance and life insurance underwriting. However, they are looking to expand into other types of insurance, particularly health insurance.

  • 22:29: Jacob is excited about the product they are working on, particularly the tobacco indicator, as it has the potential to bring significant value to the insurance industry. They believe it fills a key void by providing a powerful data source to address smoking use and facilitate automated and accelerated underwriting.

3 Key Points

  1. Jason and Jacob discuss the novelty of using dental data for insurance underwriting and acknowledges the value of alternative data sources in the insurance industry.

  2. The significance of dental data in insurance underwriting lies in its ability to offer valuable insights throughout an individual's life, regardless of their age or prior oral health practices.

  3. Jacob explains how their focus is on improving the underwriting process by reducing the need for additional tests and enhancing the speed and accuracy of risk assessment.

Tweetable Quotes

  • “Sikka.ai utilize two main products for this purpose. The first product includes indicators for pre-existing conditions like tobacco use, kidney disease, hypertension, hyperlipidemia, etc. Among these, the tobacco indicator is the most crucial, providing significant protective value per hit from exam one. The second product is mortality risk scores for life insurance underwriting, powered by procedure codes and the frequency of dental procedures performed per calendar year. These procedures help assess and understand mortality risks for potential life insurance applicants.” – Jacob

  • “Data can be viewed as Swiss cheese, with holes representing missing or incomplete information.” – Jacob

  • “Starting from a certain point in technology often influences a country's willingness to embrace new advancements.” - Jason

Resources Mentioned:

Fintech ImpactJason PereiraFintech