Machine Learning and AI in Property and Casualty insurance

In Property and Casualty Insurance, information is the currency that drives pricing, claim loss prediction and prevention, risk management and customer experience. AXA, a global insurance company, created a proof of concept (POC) using machine learning to optimize pricing by predicting "large-loss" traffic accidents with 78% accuracy. Profitability in the insurance industry comes from two streams; the ability to identify high risks and then price them appropriately. Each year approximately 10% of AXA customers experience a loss. While the cost of most losses are in the hundreds or thousands of dollar range, about 1% are considered large losses; in excess of $10,000.