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learning is a branch of artificial intelligence (AI) that teaches a computer
how to analyze and find hidden patterns in data through the use of algorithms. It’s been called a “revolution,” and from self-driving cars to health care, it has begun
to change the way we live our lives. Our Pinnacle University
group explored the emerging world of machine learning and how it fits into the
While predictive analytics can provide significant benefits to insurance companies and customers, the rapid pace at which analytics is evolving and the relative complexity of some of the models used poses a significant challenge to state regulators who are charged with reviewing and approving such models. The National Association of Insurance Commissioners (NAIC) recognized this emerging issue and created the Casualty Actuarial and Statistical Task Force (CASTF), which has been charged with identifying best practices to guide state insurance departments in their review of predictive models for underlying rating plans. Over the course of the last year, the CASTF has released multiple drafts of the white paper “Regulatory Review of Predictive Models” for public comment. And comment the public has! Numerous letters have been submitted from trade associations, actuarial organizations, credit agencies, consumer groups and even insurance departments to provide their input on the lengthy white paper.
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