Product details

This supplement is to accompany the case. White lies (inflated claims) cost the insurance industry billions of dollars every year. After investing heavily to automate workflows (from policy subscription to claims processing), digitization has ironically made fraud easier to commit and harder to catch. To an industry drowning in data and paying out millions per day for fraudulent claims, Artificial Intelligence and machine learning offer new hope. The case introduces what it calls 'explainable AI' seen through the eyes of a senior operations executive at Shift, an insurtech unicorn company whose algorithm is used by global insurers such as Generali France and Mitsui Sumitomo to fight fraudulent claims. The focus is on strategy making (following a private equity funding round) and algorithm-level decisions. With an anonymized dataset of more than 10,000 claims and a guided coding exercise in statistical computing softwares R and Python, students are able to backtest their strategies on historical data. Beyond the exercise there is ample material to drive case discussion.