MEDICI How Insurers Are Applying Machine Learning

Just like financial institutions, insurers are no strangers to leveraging advanced technologies in various aspects of the business. Some of the practical applications of machine learning in the insurance industry include managing broker business, optimizing direct marketing, understanding quote conversion, computing optimal pricing, detecting fraud, claims triage, predicting litigation, targeting inspections and audits, forecasting claims, retaining customers, and, finally, recalibrating prices. Extensive research by Satadru Sengupta, General Manager & Data Scientist, Insurance at DataRobot, explores particular ways machine learning can impact operational efficiency. Let's take a closer look at some interesting examples and partnerships. Insurance executives need accurate loss predictions so that they can set reserves appropriately.