Assessment of life insurance applications: an approach integrating neuro-symbolic rule-based with case-based reasoning

Assessment of applications for life insurance is an important task in the insurance sector that concerns estimation of potential risks underlying an application, if accepted. This task is accomplished by specialized personnel of insurance companies. Because of recent financial crises, this task is more demanding, and intelligent computer‐based methods could be employed to assist. In this paper, we present an intelligent approach to assessment of life insurance applications, which is based on an integration of neurule‐based with case‐based reasoning. Neurules are a type of neuro‐symbolic rules that combine a symbolic (production rules) and a connectionist (adaline unit) representation. A characteristic of neurules is that in contrast to other hybrid neuro‐symbolic approaches, they retain the naturalness and modularity of symbolic rules. Neurules are produced from available symbolic rules that represent general knowledge, which however do not completely cover the domain. We use health condition, age, gender, annual income, profession, insurance type and primary life insurance benefit as assessment parameters used in rule conditions. The integration of neurules and cases employs different types of indices for the cases according to different roles they play in neurule‐based reasoning. This results in its accuracy improvement. Experimental results demonstrate the effectiveness of the approach.