How AI and ML are changing insurance for good

The Insurance industry has been dealing with vast volumes of data for years, but analytics, Artificial Intelligence (AI) and Machine Learning (ML) techniques are increasingly being used to help insurance providers make faster data driven decisions. Given the exponential level of data available today with AI/ML, insurance providers can now efficiently extract new insights into their customer's needs and create stronger long-term value. Starting with how the market calculates premiums, the insurance sector now has access to thousands of data points to help them calculate premiums. Machine learning algorithms expedite the identification of the most predictive attributes driving claims losses – the most recent data points being historical cancellation data and gaps in cover. This helps insurers become more competitive, match their risks to the most appropriate pricing strategies and write the risks that meet their underwriting appetite.