Individual Claims Forecasting with Bayesian Mixture Density Networks

5 Mar 2020  ·  Kevin Kuo ·

We introduce an individual claims forecasting framework utilizing Bayesian mixture density networks that can be used for claims analytics tasks such as case reserving and triaging. The proposed approach enables incorporating claims information from both structured and unstructured data sources, producing multi-period cash flow forecasts, and generating different scenarios of future payment patterns. We implement and evaluate the modeling framework using publicly available data.

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