Article | “Top 10 Data Science Use Cases in Insurance”

Undoubtedly, the insurance companies benefit from data science application within the spheres of their great interest..Therefore, we have prepared the top 10 data science use cases in the insurance industry, which cover many various activities..Fraud detection Insurance fraud brings vast financial loss to insurance companies every year..Data science platforms and software made it possible to detect fraudulent activity, suspicious links, and subtle behavior patterns using multiple techniques..To make this detection possible the algorithm should be fed with a constant flow of data..Usually, insurance companies use statistical models for efficient fraud detection..These models rely on the previous cases of fraudulent activity and apply sampling method to analyze them..In addition, predictive modeling techniques are applied here, for the analysis and filtering of fraud instances..Identifying links between suspicious activities helps to recognize fraud schemes that were not noticed before..Price optimization Price optimization procedure is a complex notion..Therefore it uses numerous combinations of various methods and algorithms..Despite the fact that it is still the disputable issue of applying this procedure for insurance, more and more insurance companies adopt this practice.. More details

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