The Earnix Blog: Resources for Insurance and Banking Leaders

Insurers are no strangers to discussions of the application of AI to their businesses. AI in its various forms has found its way into the mainstream of nearly every aspect of the insurance sector, including risk assessment, pricing, rating, and underwriting. While early adopters gravitated to AI due to the lure of new technology, the vast majority of carriers are in search of solid business reasons for its application. AI pricing models top that list.

In the rapidly evolving world of ML and AI, the power of predictive analytics is undeniable. Yet as we harness this new power, we must also navigate the complex landscape of fairness and ethics. We must also do all we can to create equal opportunities and outcomes across different groups of individuals, regardless of their race, gender, age, or other sensitive attributes.

As 2023 fades from view and 2024 comes into focus, Reuven Shnaps, Earnix Chief Analytics Officer, takes a step back to assess where pricing, rating, and underwriting stand today, and where they may be headed.

In the bustling world of insurance, a quiet revolution is unfolding. It's not led by charismatic CEOs or flamboyant industry disruptors. Instead, it's powered by something far more enigmatic: machine learning (ML). But there's a catch – these oracles are often inscrutable, their predictions shrouded in mystery. This is where the concept of ML explainability enters the discussion, turning the spotlight on the inner workings of these digital soothsayers.