Given that themotor-insurance market may shrink by 60% by 2040, according to KPMG, an accounting firm, insurance companies had better improve customer service, reduce costs and deploy predictive analytics powered by machine learning.
Most insurance companies still have large fiefdoms concerned with detecting fraud & risk management. There is a natural aversion by those in charge of these business units to accept that fraud detection may be improved by adopting machine learning to predict which insurance claims are likely fraudulent and which are more likely to be bona fide.
Tests over time have proven that machine learning will; achieve at least the same results and often better results. And that being the case you can reduce the size of these fiefdoms, strip out costs and speed up claim processing times.
Predictive analytics will effectively flag potentially fraudulent "whiplash injury" claims. And by so doing let the remaining fraud investigators spend more time tackling fraud and less time chasing innocent motorists and passengers.
Insurtech solution providers will deliver this competitive advantage today
Personalized healthcare that looks at your genetic makeup and lifestyle factors to create unique health care and treatment plans for you. Data security programs that can detect malware, viruses and attacks with a high degree of accuracy. Computer assisted security at places like airports and stadiums that can predict who might be a threat and see things human screeners might miss. Self-driving cars that can navigate on their own and reduce traffic and accidents. Advanced fraud detection in financial and insurance fields to save us all money.