Is it feasible for insurers to offer skydiving insurance as a targeted, at-the-moment product for more adventurous policyholders? Underwriters’ heads may spin at the very thought of analyzing the risks in jumping out of airplanes for fun. Yet, it’s possible that through emerging technologies such as artificial intelligence, enhanced through machine learning, such targeted offerings may be a possibility.

That’s one takeaway from a new report from Spiros Margaris, a venture capitalist and thought leader in the digital financial services space. Machine learning, a subset of artificial intelligence, enables applications or algorithms to adapt to new data, essentially reprogramming themselves with little or no human intervention. AI and machine learning “not only have the potential to automate huge amounts of work currently done by humans, they also present new opportunities for engaging and servicing customers,” Margaris states. “Through machine learning algorithms, computers can analyze enormous amount of data, find hidden insights from past experiences, and then use the information to continuously adapt to or prepare for new situations and predict outcomes. It is the machine learning algorithms that make AI-enabled machines more “intelligent” over time by learning from data.”

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