Skip to content
Journal article · Shaping the Future of Trade

Prediction of claims in export credit finance: a comparison of four machine learning techniques

How well can machine learning predict export credit insurance claims, and which technique works best?

Mathias Bärtl and Simone Krummaker · Risks 8(1), 22 · 2020

Abstract

Using Berne Union data, the most comprehensive collection of export credit insurance data, the study compares decision trees, random forests, neural networks and probabilistic neural networks against a simple benchmark in predicting claims. All techniques predicted reasonably well whether claims would occur and, with limits, their order of magnitude, but none predicted actual claim ratios satisfactorily. Random forests performed best across all tasks.

Read the journal article at Risks

Related research