As the analog world becomes increasingly digitalized, our ability to learn from data by developing and testing algorithms will become increasingly important to traditional businesses as we can meet the deepest needs of our customers and nurture the business with new products and services that adapt to each person.
What is Machine Learning?
These are algorithms that can and have the ability to learn from data without relying on specific rule-based programming.
Machine learning became a scientific discipline in the late 1990s, when constant advances in digitization and computing allowed data scientists to delve into how to train computers for certain functions.
The unmanageable volume and complexity of big data that the world is immersed in today has increased the potential of machine learning and the need for it to be more present than ever.
What is its impact on the insurance industry?
Due to the massive use of the internet, it is indisputable that within the insurance industry, agents want to better understand the needs of their clients and future policyholders. On the other hand, and in a similar wave, are the policyholders, who want better products and processes for their claims.
Both parties can benefit from getting more intelligence from the data.
The insurance industry clearly must take a page turn and overcome many years of accumulation of printed documents, which are known as “dirty data”, since it cannot be digitized so easily.
What if AI and Machine Learning could transform that valuable data into more accessible and user-friendly information? Clearly employees, customers and agents could get more out of the data.
To support and facilitate the digitization process in parallel, data can be scanned into a system, data patterns can be identified using machine learning, and the value of the data can be extracted through a highly automated process.
Predictive modeling will always be a good option for insurers as it can outline a retail business line that is insuring and track the sentiment of each customer. This way, agents will be able to study and determine who is happy with the service or, on the contrary, who can buy insurance elsewhere.
There is no doubt that these technologies can make the job of those who work in the insurance industry easier, more predictable and more precise, which translates into more profits and savings for clients.
At LISA, we take care of providing cutting-edge technology to traditional insurance companies, in order to make them more competitive, agile and disruptive.
And what are you waiting for to revolutionize the insurance industry?