Survey on Insurance Claim analysis using Natural Language Processing and Machine Learning

In the insurance industry nowadays, data is carrying the major asset and playing a key role. There is a wealth of information available to insurance transporters nowadays. We can identify three major eras in the insurance industry's more than 700-year history. The industry follows the manual era from the 15th century to 1960, the systems era from 1960 to 2000, and the current digital era, i.e., 2001-20X0. The core insurance sector has been decided by trusting data analytics and implementing new technologies to improve and maintain existing practices and maintain capital together. This has been the highest corporate object in all three periods.AI techniques have been progressively utilized for a variety of insurance activities in recent years. In this study, we give a comprehensive general assessment of the existing research that incorporates multiple artificial intelligence (AI) methods into all essential insurance jobs. Our work provides a more comprehensive review of this research, even if there have already been a number of them published on the topic of using artificial intelligence for certain insurance jobs. We study algorithms for learning, big data, block chain, data mining, and conversational theory, and their applications in insurance policy, claim prediction, risk estimation, and other fields in order to comprehensively integrate existing work in the insurance sector using AI approaches

Smart Insurance as a Factor in the Sustainable Development of the Industry

The article is devoted to the impact of digitalization on the formation modern insurance infrastructure. Attention drawn on such aspects as: integration of digital technologies into insurance operations, elements of successful digital transformation of the settlement process claims, digitization of Frontline and Back-office processes, ensuring innovative ways to interact with customers

Blockchain-based Immutable Evidence and Decentralized Loss Adjustment for Autonomous Vehicle Accidents in Insurance

In case of an accident between two autonomous vehicles equipped with emerging technologies, how do we apportion liability among the various players? A special liability regime has not even yet been established for damages that may arise due to the accidents of autonomous vehicles. Would the immutable, time-stamped sensor records of vehicles on distributed ledger help define the intertwined relations of liability subjects right through the accident? What if the synthetic media created through deepfake gets involved in the insurance claims? While integrating AI-powered anomaly or deepfake detection into automated insurance claims processing helps to prevent insurance fraud, it is only a matter of time before deepfake becomes nearly undetectable even to elaborate forensic tools. This paper proposes a blockchain-based insurtech decentralized application to check the authenticity and provenance of the accident footage and also to decentralize the loss-adjusting process through a hybrid of decentralized and centralized databases using smart contracts.Comment: IEEE Global Emerging Technology Blockchain Forum 202

The AI Revolution: Opportunities and Challenges for the Finance Sector

This report examines Artificial Intelligence (AI) in the financial sector, outlining its potential to revolutionise the industry and identify its challenges. It underscores the criticality of a well-rounded understanding of AI, its capabilities, and its implications to effectively leverage its potential while mitigating associated risks. The potential of AI potential extends from augmenting existing operations to paving the way for novel applications in the finance sector. The application of AI in the financial sector is transforming the industry. Its use spans areas from customer service enhancements, fraud detection, and risk management to credit assessments and high-frequency trading. However, along with these benefits, AI also presents several challenges. These include issues related to transparency, interpretability, fairness, accountability, and trustworthiness. The use of AI in the financial sector further raises critical questions about data privacy and security. A further issue identified in this report is the systemic risk that AI can introduce to the financial sector. Being prone to errors, AI can exacerbate existing systemic risks, potentially leading to financial crises. Regulation is crucial to harnessing the benefits of AI while mitigating its potential risks. Despite the global recognition of this need, there remains a lack of clear guidelines or legislation for AI use in finance. This report discusses key principles that could guide the formation of effective AI regulation in the financial sector, including the need for a risk-based approach, the inclusion of ethical considerations, and the importance of maintaining a balance between innovation and consumer protection. The report provides recommendations for academia, the finance industry, and regulators

Using Feature Selection with Machine Learning for Generation of Insurance Insights

Insurance is a data-rich sector, hosting large volumes of customer data that is analysed to evaluate risk. Machine learning techniques are increasingly used in the effective management of insurance risk. Insurance datasets by their nature, however, are often of poor quality with noisy subsets of data (or features). Choosing the right features of data is a significant pre-processing step in the creation of machine learning models. The inclusion of irrelevant and redundant features has been demonstrated to affect the performance of learning models. In this article, we propose a framework for improving predictive machine learning techniques in the insurance sector via the selection of relevant features. The experimental results, based on five publicly available real insurance datasets, show the importance of applying feature selection for the removal of noisy features before performing machine learning techniques, to allow the algorithm to focus on influential features. An additional business benefit is the revelation of the most and least important features in the datasets. These insights can prove useful for decision making and strategy development in areas/business problems that are not limited to the direct target of the downstream algorithms. In our experiments, machine learning techniques based on a set of selected features suggested by feature selection algorithms outperformed the full feature set for a set of real insurance datasets. Specifically, 20% and 50% of features in our five datasets had improved downstream clustering and classification performance when compared to whole datasets. This indicates the potential for feature selection in the insurance sector to both improve model performance and to highlight influential features for business insights

Deep Learning Based Car Damage Classification and Cost Estimation

Due to the increasing number of people driving cars, the number of insurance claims has also increased. This process involves the manual assessment of the vehicle by an insurance company's service engineer, as well as the physical inspection by a licensed insurance company representative. An end-to-end solution has been proposed that would allow the customer and the insurance company to automate the process of recognizing the damaged area in the vehicles and estimating the cost of the damage. It would allow them to get a better understanding of the condition of the vehicle. For this purpose, A deep learning, Mask Region-based Convolutional Neural Network (Mask RCNN) model was utilized in this work to classify vehicle damages costs. Two Mask RCNN models were utilized, the first one was used to detect the sides of the vehicle, which will affect damage cost estimation and the second was used to find the area of the damage. The Experimental work shows that the proposed model gives reasonable results to estimate the cost of the damage. We achieve an accuracy of 98.5% with the combination of the two Mask RCNN models. And showed that Mask RCNN has a promising result to detect the area of the damage in the car

Discovering the Effectiveness of Pre-Training in a Large-scale Car-sharing Platform

Recent progress of deep learning has empowered various intelligent transportation applications, especially in car-sharing platforms. While the traditional operations of the car-sharing service highly relied on human engagements in fleet management, modern car-sharing platforms let users upload car images before and after their use to inspect the cars without a physical visit. To automate the aforementioned inspection task, prior approaches utilized deep neural networks. They commonly employed pre-training, a de-facto technique to establish an effective model under the limited number of labeled datasets. As candidate practitioners who deal with car images would presumably get suffered from the lack of a labeled dataset, we analyzed a sophisticated analogy into the effectiveness of pre-training is important. However, prior studies primarily shed a little spotlight on the effectiveness of pre-training. Motivated by the aforementioned lack of analysis, our study proposes a series of analyses to unveil the effectiveness of various pre-training methods in image recognition tasks at the car-sharing platform. We set two real-world image recognition tasks in the car-sharing platform in a live service, established them under the many-shot and few-shot problem settings, and scrutinized which pre-training method accomplishes the most effective performance in which setting. Furthermore, we analyzed how does the pre-training and fine-tuning convey different knowledge to the neural networks for a precise understanding

CarDD: A New Dataset for Vision-based Car Damage Detection

Automatic car damage detection has attracted significant attention in the car insurance business. However, due to the lack of high-quality and publicly available datasets, we can hardly learn a feasible model for car damage detection. To this end, we contribute with the Car Damage Detection (CarDD), the first public large-scale dataset designed for vision-based car damage detection and segmentation. Our CarDD contains 4,000 high-resolution car damage images with over 9,000 wellannotated instances of six damage categories (examples are shown in Fig. 1). We detail the image collection, selection, and annotation processes, and present a statistical dataset analysis. Furthermore, we conduct extensive experiments on CarDD with state-of-theart deep methods for different tasks and provide comprehensive analysis to highlight the specialty of car damage detection