How machine learning is transforming the insurance sector: case of fraud detection in Morocco
by Nabila Hamdoun
International Journal of Applied Pattern Recognition (IJAPR), Vol. 6, No. 4, 2021

Abstract: Artificial intelligence and machine learning can play a crucial role in fraud detection, especially in the insurance sector by providing an effective way to identify fraudulent activity, reducing costs and increasing profitability for the company. This paper illustrates the business value of applying machine learning algorithms for predicting fraudulent behaviour in auto insurance claims. In addition, the paper offers a comparison between two algorithms known for their high performance: random forest and XG-boosting machine with a statistical model: linear discriminant analysis (LDA), and find that XG-boosting machine performs better on Moroccan customer data than others. This study aims to encourage insurance companies to take advantage of recent advances in artificial intelligence and machine learning to solve business challenges especially in the fraud detection process.

Online publication date: Thu, 11-Nov-2021

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