Evolution in Insurance Sector: Tech, AI and Data ScienceData Scientist Akshay Acholkar on How Insurance Leverages AI Models and APIs
The insurance sector gained prominence during the pandemic, with a significant surge in claims. To manage this surge, its reliance on technology saw a marked increase.
The insurance sector employs models for risk stratification, fraud detection or early claims verification, said Akshay Acholkar, data scientist, Munich Re.
"There are many statistical and machine learning models that can be applied for this, and almost every insurance company is using a model to assess its customers," Acholkar said.
But over a period of time, fraudsters also learn to use these models; for instance, they learn how the model is tagging customers. So, the models need to be retrained over a period of time, he said.
The sector is also using application programming interfaces or APIs to gain more insights about customers, for instance, obtaining their credit scores from credit rating agencies.
Another technology that is making a major impact, especially on coders, is generative AI. Acholkar, who is also a coder, said gen AI has seen a "paradigm shift" in coding.
"Gen AI helps me explain the code to people. If the code was written by someone else, and they used certain libraries that I am not familiar with, then I can use gen AI to understand this code," Acholkar said.
In this video interview with ISMG, Acholkar also discussed:
- Tech trends in insurance;
- How the insurance industry leverages data science;
- AI transforming code development.
Acholkar is a data scientist with over six years of experience, especially in the insurance and finance sectors and brings analytical expertise to solve intricate business problems. He is currently navigating through the nuanced possibilities of gen AI.