Mastering Python for Finance - Second Edition

Insurance and loan underwriting

Insurance companies actively use AI and machine learning to augment some insurance sector functions, improve pricing and marketing of insurance products, and to reduce claims processing times and operational costs. In loan underwriting, many data points of a single consumer, such as age, income, and credit score, are compared against a database of candidates in building credit risk profiles, determining credit scores, and calculating the possibility of loan defaults. Such data relies on transaction and payment history from financial institutions. However, lenders are increasingly turning to social media activities, mobile phone usage, and messaging activities to capture a more holistic view of creditworthiness, ...