The risk assessment with artificial neural networks method in accountant professional liability insurance

Risk is the subject that forms the basis of insurance contract. The damage that will occur because of the risks guaranteed with insurance. The importance of insurance is increasing day by day and has developed on the basis of branchs. Professional liability insurance which guarantees the risks of the prefession members that are in professional activities gains importance. Professional liability insurance has developed rapidly and has become common. The clouse of Accountant professional liability insurance came into force in May 2007 in Turkey. Accountant professional liability insurance is a new insurance branch guaranteeing the litigation risk of profession membersIn study litigation risk factors of Accountant professional liability insurance were identified, artificial neural network model is developed assessing the litigation risks artificial neural network method was applied in the study The findings obtained by artificial neural network method were compared with the findings obtained by logistic regression and discriminant analysis methods. When the occurred litigation risks of Accountant professional liability insurance and the litigation of the artificial neural network method is compared, the results were quite consistent. It is understood that actual results and the results obtained from artificial neural network model gave out put that are very close to the real value and the artificial neural networks predicted accurately 99% the litigation risks of Accountant professional liability insurance