Predsednik Udruženja aktuara Srbije
CHALLENGES IN APPLICATION OF MACHINE LEARNING IN INSURANCE INDUSTRY
The Internet of Intelligent Things, Blockchain technology2
, software robots3
and various aspects of artificial intelligence such as machine learning are often
referenced in modern literature as having great potential to improve the processes
in insurance business. This paper will focus on machine learning.
Machine learning is a subset of artificial intelligence intended for study and
recognition of behaviour patterns by using statistical methods for available data
processing. In other words, machine learning is a software able to make its own
decisions based on previous experience. The key benefit companies can draw from
machine learning is prediction of future trends, where software independently
discovers patterns in the available data.
Insurance companies may use machine learning to optimize their tariffs,
settle claims more efficiently, and improve the quality of loss reserving, and as a
powerful tool in combating frauds.
Key words: machine learning, insurance