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As in other sectors of the economy, the insurance industry has experienced many changes in information technology. Advances in hardware, software, and networks have offered benefits, such as reduced costs and time of data processing as well as increased potential for profit. Competition has also increased, making effective IT solutions even more necessary.

This paper discusses how insurance companies can benefit from modern data mining methodologies, which help companies reduce costs, increase profits, retain current customers, acquire new customers, and develop new products. You will learn about how to implement data mining projects and about changes in U.S. legislation that affect insurance firms. A list of recommended reading is also included.