Insurers embrace machine learning
More than half (54%) of insurance executive surveyed by analytics solution provider Earnix use machine learning for prediction analysis and modelling. Of those using the technique, 70% are using it for risk modelling, 45% for demand models and 36% for fraud detection. The use of artificial intelligence-based technology has made their models more accurate, 57% of those surveyed said. The more widespread use of the technology is currently limited by a lack of knowledge about machine learning and AI and a lack of internal expertise.
Earnix, a provider of analytics solutions for the financial services industry, today announced the results of a global survey of insurance executives, which showed the wide adoption of machine learning across the globe, and the expectation that it will bring “significant” change to the industry over the next three to five years.

Over half (54%) of the almost 200 insurance executives surveyed said that their organisation was using machine learning for predictive analytical modelling. Of those deploying the technology, 70% said they were using it for risk modelling, followed by demand models (45%) and fraud detection (36%).

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Although nascent, most companies using machine learning have realised measurable benefits. Over half of the respondents (57%) said that the AI-based technology has made their analytical models far more accurate, which has led to better risk assessments and ultimately better decisions.

The survey found that the main barrier to wider adoption is a lack of knowledge and expertise within organisations. 82% said their organisation is relatively inexperienced with the technology.

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According to Udi Ziv, CEO of Earnix: “The insurance industry has always been data-driven and the use of machine learning is a powerful trend that will quickly become a competitive edge for those who embrace it.”

“Earnix was an early adopter of this technology and is working with its clients to integrate it into their analytics, enabling them to automate more of their processes and predict outcomes more accurately. The combination of advanced analytics with Machine Learning is truly an innovation with direct and measurable benefits.”

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