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An Overview of Insurance Uses of Fuzzy Logic

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Computational Intelligence in Economics and Finance

Abstract

It has been twenty-five years since DeWit(1982) first applied fuzzy logic (FL) to insurance. That article sought to quantify the fuzziness in underwriting. Since then, the universe of discourse has expanded considerably and now also includes FL applications involving classification, projected liabilities, future and present values, pricing, asset allocations and cash flows, and investments. This article presents an overview of these studies. The two specific purposes of the article are to document the FL technologies have been employed in insurance-related areas and to review the FL applications so as to document the unique characteristics of insurance as an application area.

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  1. Smeal College of Business, Penn State University, University Park, PA, 16802

    Arnold F. Shapiro

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  1. Arnold F. Shapiro
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  1. AI-ECON Research Center Department of Economics, National Chengchi University, Taipei, 11623, Taiwan R.O.C.

    Shu-Heng Chen

  2. Electrical & Computer Engineering, Box 90291, PSE, Durham, NC, 27708, USA

    Paul P. Wang

  3. Department of Finance and Banking, Aletheia University, Tamsui, Taipei, 25103, Taiwan R.O.C.

    Tzu-Wen Kuo

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Shapiro, A.F. (2007). An Overview of Insurance Uses of Fuzzy Logic. In: Chen, SH., Wang, P.P., Kuo, TW. (eds) Computational Intelligence in Economics and Finance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-72821-4_2

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  • DOI: https://doi.org/10.1007/978-3-540-72821-4_2

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