Artificial Neural Network Model for Predicting Insurance Insolvency
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Date
2012
Authors
Ibiwoye, A
Ajibola, O.O
Sogunro, A.B
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Abstract
serves as a medium for fund mobilization. In spite of the harsh economic environment in Nigeria, the insurance
industry has been crucial to the consummation of business plans and wealth creation. However, the continued
downturn experienced by many countries, in the last decade, seems to have impacted negatively on the financial
health of the industry, thereby rendering many insurance companies inherently distressed. Although there is a
regulator to monitor the insurance companies in order to prevent insolvency and protect the right of consumers
this oversight function has been made difficult because the regulators appeared to lack the necessary tools that
would adequately equip them to perform their oversight functions. One such critical tool is a decision making
model that provides early warning signal of distressed firms. This paper constructs an insolvency prediction
model based on artificial neural network approach which could be used to evaluate the financial capability of
insurance companies.
Description
Staff Publications
Keywords
Insurance , Financial protection , Artificial neural network , Insolvency
Citation
Ibiwoye, A, Ajibola, O.O and Sogunro, A.B (2012) Artificial Neural Network Model for Predicting Insurance Insolvency. International Journal of Management and Business Research, Vol. 2( 1), 59-68pp.