The surge of machine learning and robo-advisors: Reshaping the insurance industry terrain

Abstract

This book chapter explores the profound impact of machine learning and robo-advisors on the insurance industry, ushering in a transformative era characterized by heightened efficiency and innovation. Through an in-depth analysis of their ascendance, we delve into how these technologies are revolutionizing traditional practices within the insurance sector. The utilization of machine learning algorithms is examined across various facets of the industry, including fraud detection, underwriting automation, claims processing optimization, and risk management through predictive analytics. Additionally, the integration of IoT, telematics, and other emerging technologies further amplifies the potential for enhanced customer experiences and streamlined operations. Ethical considerations, regulatory compliance, and the imperative need for explainable AI in decision-making processes are also addressed. The study underscores the collaborative efforts between insurers and InsurTech startups, illustrating how such partnerships leverage the power of machine learning to navigate and thrive in an evolving landscape. As the insurance industry undergoes this significant metamorphosis, the book chapter concludes by highlighting key trends and implications for the future trajectory of the sector. © 2025 Bentham Science Publishers. All rights reservwd.

Keywords

Author Keywords

Artificial intelligence Machine Learning Insurance IoT Roboadvisor

Index Keywords

Learning systems Decision making Machine learning Machine-learning Predictive analytics Learning algorithms Regulatory compliance Fraud detection In-depth analysis Insurance industry Insurance sectors IoT Machine learning algorithms Optimization managements Processing optimizations Roboadvisor Insurance

Author Affiliations

IIMT University, Meerut, Meerut, UP, India

Sandip University, Nashik, MH, India

Funding & Acknowledgements

No funding information

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The surge of machine learning and robo-advisors: Reshaping the insurance industry terrain

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