How Automated Machine Learning is Revolutionizing the Insurance Industry
Insurance organizations around the world are heavily investing in AI. “Recent research by Genpact found that 87% of insurers are planning to invest more than $5 million in AI by 2020 – and more than half want to transform their existing business processes over the next three years because of AI.” (Technative) This race to embrace AI showcases the importance of remaining relevant and competitive in the Fourth Industrial Revolution.
Insurers are using AI for:
- Marketing: To better identify conversion opportunities.
- Underwriting: To allow for more granular differentiation among risk.
- Pricing: To allow for more precise prediction of loss propensity.
- Loss control: To distinguish more precisely among causes of loss in regards to their impact on loss ratios.
- Claims: To implement cost-effective claims “triage.”
With multiple use cases and pain points to address and overcome, how can insurers successfully leverage AI? With automated machine learning. Automated machine learning is a game-changer for insurance companies because it empowers people throughout the organization from actuaries to product managers.