Given that themotor-insurance market may shrink by 60% by 2040, according to KPMG, an accounting firm, insurance companies had better improve customer service, reduce costs and deploy predictive analytics powered by machine learning.

Most insurance companies still have large fiefdoms concerned with detecting fraud & risk management. There is a natural aversion by those in charge of these business units to accept that fraud detection may be improved by adopting machine learning to predict which insurance claims are likely fraudulent and which are more likely to be bona fide.

Tests over time have proven that machine learning will; achieve at least the same results and often better results. And that being the case you can reduce the size of these fiefdoms, strip out costs and speed up claim processing times.

Predictive analytics will effectively flag potentially fraudulent  "whiplash injury" claims. And by so doing let the remaining fraud investigators spend more time tackling fraud and less time chasing innocent motorists and passengers.

Insurtech solution providers will deliver this competitive advantage today