Machine learning will soon become a crucial part in insurers’ business models, to put fraudsters to an end. Fraud has become a pertinent issue, as UK insurers revealed, 130,000 fraudulent claims worth $1.32 billion are among all insurance products. Machine learning is creating many new opportunities for insurers in many ways. In addition, telematic solutions play a big role in fraudulent claims, providing a forensic level of detail.
“Organisations such as Octo Telematics have transformed how insurers assess risk, deliver crash and claim services and detect fraud. With a sophisticated Internet of Things (IoT) strategy, Octo can now analyse 11 billion data points daily from five million connected cars. Machine learning is helping the company to make more accurate predictions and risk models.”