How Deep Learning is Transforming the Insurance Industry - Appen

Fraud detection is another important application for machine learning in insurance. With the amount of payment channels on the rise leading to rapid growth in the number of overall transactions occurring worldwide, machine learning algorithms are used to develop automated fraud screening systems that are faster and more accurate than systems that rely on transaction rules combined with human reviews. Machine learning distinguishes between normal and fraudulent behavior, and adapts over time based on variations of fraud patterns in the data. This is the true power of machine learning as compared to traditional analytics methods -- the ability to detect types of fraud that are similar but not identical to existing patterns, as well as the ability to spot completely new types of fraud altogether.