One of the challenges faced by data scientists is dealing with unstructured data using traditional machine learning models. These models are trained on structured data that have input features with corresponding output labels. When using unstructured data, the data cannot be directly used as an input feature. One approach is to use Artificial Neural Networks (ANN) to unlock business insights from unstructured data.
The field of artificial intelligence has always envisioned machines being able to mimic the functioning and abilities of the human mind. Language is considered as one of the most significant achievements of humans that has accelerated the progress of humanity. So, it is not a surprise that there is plenty of work being done to integrate language into the field of artificial intelligence in the form of Natural Language Processing (NLP). Today we see the work being manifested in likes of Alexa and Siri.
As we set our feet in 2023, having experienced a roller-coaster ride last year thanks to the geopolitical tensions and some lingering rub-off effects of COVID-19, it drives home that "change is the only constant." Like any other industry, insurance is undergoing paradigm changes at different levels, whether recruiting potential candidates or customer onboarding, to name a few. However, a common thread that ties the myriad business functions of an insurance company has been data and innovation. There has been an ever-increasing need for insurance providers to use data and embrace innovation in their routine activities, eventually to stand the cut-throat competition.
Risk Management is a core function within the insurance industry. It is a vital responsibility of the underwriting team. Insurance companies collect data scattered across different business units in various formats – some of which are paper and digital, most of which are typically unstructured. The underwriting team doesn't have immediate access to the information required for internal and external decision-making, resulting in delays in making decisions and costly mistakes.
Most insurers offer similar products and services, which makes it challenging to attract new customers and retain them. As an industry, insurance is low-touch, and insurers seldom interact with their customers. A report shows that the top companies have an average customer retention rate of 93 - 95 percent, while insurance companies have an average of 84 percent.