Insurtech Magazine September 2023 | Page 55

BIG DATA

“ One of the transformative impacts of big data is its role in redefining underwriting and risk assessment ”

HUGH COUGHLAN CTO AND FS & I OF DATA & APPLIED INTELLIGENCE , HUGH COUGHLAN
The triumvirate of AI , machine learning , and big data For Persistent Systems ’ Mishra , “ big data is the bedrock of building data models to support insurance operations .”
He explains : “ The first set of big data comes from internal systems of policyholder master records , billing , accounting , and claims . This is then merged with third-party data to create data clusters for business processes .
“ The next step is to create an analytics platform to analyse the data clusters .
Additionally , self-service options should be provided to business users for collating insights on historical data on products , claims , and customer segmentation .
“ Once self-service maturity is in place , predictive analytical machine learning models can be built to enable customisation with self-driven rules and extracts for root cause analysis , triage , and trends .”
It is clear , then , that big data is the symbolic fuel for machine learning ( a type of AI ), but what of AI ’ s broader role ? Coughlan expands : “ AI provides the larger framework within which machine learning operates , creating intelligent systems capable of problem-solving , decisionmaking , and complex reasoning .”
Marr breaks the relationship down to its nub : “ Big data is the vast pool of information , machine learning is the
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