Publication detail

Evaluating the Creditworthiness of a Client in the Insurance Industry Using Adaptive Neuro-Fuzzy Inference System

DOSKOČIL, R.

Original Title

Evaluating the Creditworthiness of a Client in the Insurance Industry Using Adaptive Neuro-Fuzzy Inference System

Type

journal article in Web of Science

Language

English

Original Abstract

The article deals with the issue of a client´s creditworthiness assessment in the insurance industry. The article aims to identify new factors related to a client´s creditworthiness, and to create an assessment model. The factors which have relations to a client´s creditworthiness were identified in the first research stage. These factors represent the inputs into the model. The assessment model of the client´s creditworthiness was created in the second stage. In the third stage, the model was verified and implemented. The neuro-fuzzy method was used for creation, verification and implementation of the model. Five variables were selected as the inputs including damages, insurance length, insurance penetration, annual earnings and 2nd degree liquidity. These input variables were divided into two categories based on their nature (insurance indicators, accounting indicators). Research results show that the proposed model was verified above input data and can be used as a tool for supporting decisions concerning a client’s creditworthiness in the insurance industry. The main contribution of the paper is the identification of new factors which have relation to a client’s creditworthiness and the creation of the assessment model which works with these new factors transferred to fuzzy variables. The proposed model differs from the current approaches primarily thanks to its complex, systematic and hierarchical ability to evaluate the newly identified factors related to a client’s creditworthiness as fuzzy variables. Thanks to the model, it is possible to automate and accelerate the process of evaluation of a client’s creditworthiness in the insurance industry. The knowledge gained from the evaluation model is immediately possible to use in the strategic management of insurance companies e.g. in marketing activities.

Keywords

Insurance Industry, Creditworthiness, Decision-Making, Neuro-Fuzzy Model, Fuzzy Logic, Artificial Neural Network.

Authors

DOSKOČIL, R.

Released

28. 2. 2017

Publisher

Kaunas University of Technology

Location

Kaunas, Litevská republika

ISBN

1392-2785

Periodical

Engineering Economics

Year of study

28

Number

1

State

Republic of Lithuania

Pages from

15

Pages to

24

Pages count

10

URL

http://inzeko.ktu.lt/index.php/EE/article/view/14194

Full text in the Digital Library

http://hdl.handle.net/11012/201703

BibTex

@article{BUT133715,
  author="Radek {Doskočil}",
  title="Evaluating the Creditworthiness of a Client in the Insurance Industry Using Adaptive Neuro-Fuzzy Inference System",
  journal="Engineering Economics",
  year="2017",
  volume="28",
  number="1",
  pages="15--24",
  doi="10.5755/j01.ee.28.1.14194",
  issn="1392-2785",
  url="http://inzeko.ktu.lt/index.php/EE/article/view/14194"
}