While data science is a relatively new field, insurance companies have always worked with actuaries who use similar statistical techniques to predict risks. But what puts data science in a league of its own is that it can comprehensively analyze so much data. Much more than a simple Excel spreadsheet ever could.
Machine learning can gather information from millions of companies, analyzing key factors like debt, liquidity, and country and sector risks. With this information, we’re able to highlight which companies may be at risk of non-payment, or even filing for bankruptcy.
However, we also rely on "human power.” We update and adapt the models constantly with the help of risk analysts who review company financials daily and check the model for accuracy. So, while our advice is informed by large volumes of high-quality data, human analysis is the key. Thanks to this powerful combination, we can help our clients make safe, confident decisions and protect themselves against risk.