Nowadays, insurance companies can hugely benefit from the use of Machine Learning (ML) on their daily basis. Some of these benefits are:
According to Accenture, “most of the insurance companies process only 10-15 percent of the data they have access to”. Considering these numbers, the amount of valuable data not being used is enormous. Undeniably, there is a lot of space to grow on these matters. With that being said, insurance companies are starting to mature in this field as the potential for growth is massive. Unquestionably, the advantages are great.
However, Machine Learning also presents some of the following challenges:
To sum up, the insurance business will undergo a great evolution in the future. The evolution of ML algorithms and the improvement of the available databases of the insurance companies are two strong factors that will contribute for this evolution. This will lead to the creation of innovative products and improvements in the business processes. Consequently, the results will vary between lower costs and to provide a far better experience to customers through personalised offers.