Findings from City University of London Has Provided New Data on Data Mining (An Agent-based System With Temporal Data Mining for Monitoring Financial Stability On Insurance Markets)

2019 MAY 31 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Information Technology - Data Mining is the subject of a report. According to news reporting out of London, United Kingdom, by NewsRx editors, research stated, “We describe an expert system to monitor the stability of insurance markets. It consists of two components: an agent-based simulation component and a temporal data mining component.”

Our news journalists obtained a quote from the research from the City University of London, “Like other financial markets, insurance markets experience destabilizing cycles and suffer episodic crises. The expert system assists market regulators by monitoring the financial position of individual insurers and of the overall market, and by forecasting cycles and impending insolvencies. The agent-based simulation component runs a forward simulation allowing for interaction among insurers in a competitive market, and between insurers and customers. The temporal data mining component extracts useful information for market regulators from the simulations. A prototype of the system is applied to the automobile insurance market. We show how the system may be used to forecast cycles, investigate stability, and analyze insurers’ herding behavior on the market.”

According to the news editors, the research concluded: “A practical policy conclusion is that regulators should monitor individual insurers’ pricing pattern because aggressive price undercutting creates a ‘winner’s curse’, with subsequent losses and market instability.”

For more information on this research see: An Agent-based System With Temporal Data Mining for Monitoring Financial Stability On Insurance Markets. Expert Systems with Applications, 2019;123():270-282. Expert Systems with Applications can be contacted at: Pergamon-Elsevier Science Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, England. (Elsevier - www.elsevier.com; Expert Systems with Applications - http://www.journals.elsevier.com/expert-systems-with-applications/)

Our news journalists report that additional information may be obtained by contacting I. Owadally, City University of London, Cass Business School, London, United Kingdom. Additional authors for this research include D. Wright, F. Zhou, R. Otunba and J. Lin.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.eswa.2019.01.049. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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