Insolvency Prediction Model Using Artificial Neural Network for Malaysian General Insurers

摘要

Insolvency of insurance companies has been a concern to the community due to the need to protect the general public from the aftermath of insurer insolvency and to try to minimize the costs associated to this difficulty such as the insurance guaranty funds. The artificial neural network is utilized in this study to create an insolvency predictive model that could predict any future failure of general insurance company in Malaysia. The neural networks results show high predictability, suggesting the usefulness of this method for predicting future insurer insolvency in Malaysia.