Machine Learning in Insurance Pricing

Have you ever wondered whether you should be applying Machine Learning in Insurance Pricing? According to Gartner, Machine Learning is one of the hottest technology trends of 2016 and is revolutionising the way many companies do business. In this blog post I take a look at machine learning from an insurance pricing stand point, highlighting the advantages and challenges of applying machine learning in insurance pricing. In order to help you get started I also provide free R code, so you can try these exciting algorithms on your own insurance data. Machine Learning has gained in popularity in recent years - but wait... isn't Machine Learning just Statistical Modelling!? Lets start with some definitions: Clearly then there are similarities between supervised learning and statistical modelling.