Download Artificial intelligence could be not be useful in

Artificial Intelligence
is the field of computer science that studies
how machines can be made to act intelligently.
The benefit of using The benefit of using AI enabled software is that
properly trained machines can make decisions
and predictions on important future
events with the accuracy at the level of a human expert.
John McCarthy, professor of computer science, works at the artificial
intelligence lab in Stanford, Calif. McCarthy, father of artificial
intelligence and professor emeritus at Stanford University, has died at
age 84. The university announced that McCarthy died early Monday, Oct.
24, 2011, at his home in Palo.
DATA MINING – Intelligence Agent with great potential
to help companies focus on the most important
information in the data they have collected about the
behaviour of their customers and potential customers.
It is the process of analyzing data from different
perspectives and summarizing it into useful information
DATA MINING
ADVANTAGES
DISADVANTAGES
INSURANCE
BUSINESS
Insurance industry needed Data Mining Software as a
new tool for knowledge discovery.
Companies in the Insurance
industry collected
enormous amounts of data
about their clients.
This is invaluable
information about
customers behaviour,
activities, and preferences.
Advantages Data Mining in
Insurance Business
- Predict which customers will buy
new policies;
- Spot and understand new business trends in
claims;
- Detect customers, belonging to
frequent buying patterns.
Disadvantages Data Mining in Insurance
Business
Privacy Issues
Security issues
• Insurance companies collect information about
their customers in many ways for understanding
their purchasing behaviours trends. However
companies don’t last forever, some days they
may be acquired by other or gone. At this time
the personal information they own probably is
sold to other or leak. Because of privacy issues,
people are afraid of their personal information is
collected and used in unethical way that
potentially causing them a lot of trouble
• Insurance companies owns information about
their employee and customers including social
security number, birthday, payroll and etc. There
have been a lot of cases that hackers were
accesses and stole big data of so much personal
and financial information available, the credit
card stolen and identity theft become a big
problem.
Disadvantages Data Mining in Insurance
Business
Misuse of
information/inacc
urate information
• Information collected by Insurance
Companies through data mining can
be misused. This information is
exploited by unethical people or
business to take benefit of vulnerable
people or discriminate against a group
of people.
• Data mining technique is not perfectly
accurate therefore if inaccurate
information is used for decisionmaking will cause serious consequence