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Summary: The collaborative filtering (CF) recommendation algorithm predicts the purchases of specific users based on their characteristics and purchase history. This study empirically analyzes the possibility of applying CF to the insurance industry using real customer data from South Korea. Using three different CF models, we examined the relevance of applying the CF model to insurance products under various situations by comparing them with logistic‐regression‐based recommendation models. Through experiments, we empirically show that CF models apply to the insurance industry, especially when customer purchase information is added to the model. [ABSTRACT FROM AUTHOR]

With the spread of COVID-19, the "untact" culture in South Korea is expanding and customers are increasingly seeking for online services. A recommendation system serves as a decision-making indicator that helps users by suggesting items to be purchased in the future by exploring the symmetry between multiple user activity characteristics. A plethora of approaches are employed by the scientific community to design recommendation systems, including collaborative filtering, stereotyping, and content-based filtering, etc. The current paradigm of recommendation systems favors collaborative filtering due to its significant potential to closely capture the interest of a user as compared to other approaches. The collaborative filtering harnesses features like user-profile details, visited pages, and click information to determine the interest of a user, thereby recommending the items that are related to the user's interest. The existing collaborative filtering approaches exploit implicit and explicit features and report either good classification or prediction outcome. These systems fail to exhibit good results for both measures at the same time. We believe that avoiding the recommendation of those items that have already been purchased could contribute to overcoming the said issue. In this study, we present a collaborative filtering-based algorithm to tackle big data of user with symmetric purchasing order and repetitive purchased products. The proposed algorithm relies on combining extreme gradient boosting machine learning architecture with word2vec mechanism to explore the purchased products based on the click patterns of users. Our algorithm improves the accuracy of predicting the relevant products to be recommended to the customers that are likely to be bought. The results are evaluated on the dataset that contains click-based features of users from an online shopping mall in Jeju Island, South Korea. We have evaluated Mean Absolute Error, Mean Square Error, and Root Mean Square Error for our proposed methodology and also other machine learning algorithms. Our proposed model generated the least error rate and enhanced the prediction accuracy of the recommendation system compared to other traditional approaches. [ABSTRACT FROM AUTHOR]