Insurance claims management is the process of managing a claim from reception to settlement. The insurance claim process is particularly suited to machine learning solutions as much can be done to cut time and costs, leading to speedier resolution of claims to the satisfaction of both insurer and insured.
Historically, insurers have relied on linear regression of a small number of risk factors, largely reported by the policy-holder on a trust basis, to determine an insurance premium. However, a good prediction model of individual future insurance costs is becoming a business essential as competition in the insurance industry and low customer switching costs have become key drivers for insurers to build a pricing structure which covers their incurred costs.
Life insurance underwriting is the act of accepting liability under a life insurance policy. Insurers increasingly use machine learning to identify risk categories and recommend policies, faster and more accurately than humans alone.
In these times of lockdowns, these programs become especially important as people are more interested in life insurance but may only be reached remotely.