Predictive analytics power cyber-insurance industry - Raconteur

Dramatic advances in artificial intelligence and machine-learning technologies have accelerated the ability of insurers to predict risk. Algorithms can find trends and patterns that help forecast the probability of a risk situation occurring again. By utilising internal and external data sources, algorithms are selected according to how a specific model fits with the insurer's data. This model is applied to predict or detect the likelihood of an event happening, such as a person needing medical attention abroad for travel insurance or a house flooding for home insurance. Insurance and assistance provider The Collinson Group uses a variety of predictive analytical tools to flash through terabytes of data to find variables, some of which it hadn't considered, to help predict customer risk and purchasing behaviour.