Machines assess risk and detect fraud - Raconteur

A formal branch of artificial intelligence, machine-learning builds systems that learn directly from the data they are fed and effectively program themselves to analyse that data and make accurate predictions. Having already helped multiple business sectors create new models and drive competitive advantage, now it's the turn of the insurance industry. So just how is machine-learning changing the way insurers do business? "It gives insurers three distinct advantages," explains Max Richter, managing director in Accenture's UK insurance analytics group. "The first is to mine greater volumes of data, the second to scale analytics across the organisation by working smarter and faster, and lastly by answering more complex questions from'will this customer leave me at renewal?' to'what can I do about it?'" As such it is quickly becoming an essential tool for the insurance sector, specifically enabling companies to yield higher predictive accuracy as it can fit more flexible and complex models.