APPLICATION OF MACHINE LEARNING WITH BIG DATA ANALYTICS IN THE INSURANCE INDUSTRY

This study shows the potential application of machine learning approaches and big data in the insurance industry. Nowadays the amount of data in the insurance industry increased day to day because of different web technologies, mobile devices and sensors device. As result huge amount of data occurred as big data. Big data characterized as Volume, Velocity and volume. Machine learning have great role to turn data in to information. Machine learning learns from data to give new insights, predictions and decision from huge amount of data, because machine learning have ability to learn from the input data and it is a basic component of data analytics tool. Machine learning have many applications in the insurance industry: including, claim processing and claim review, fraud detection, customer retention, insurance risk analysis and Customer segmentation. As result of this study, machine learning builds different prediction model for insurance industries, because of this nowadays machine learning consider as fundamental game changer of insurance companies. Further study will be conducted to implement the potential application of machine learning with integrating of big data tool in Ethiopia insurance companies.