Risk Assessment for Accounting Professional Liability Insurance

Year 2016, , 93 - 112, 29.10.2016

Şerafettin Sevim , Birol Yıldız Nilüfer Dalkılıç

https://doi.org/10.17233/se.2016.06.004

Cited By: 1

Abstract

In this study, litigation risk factors were determined for accounting professional liability insurance and an artificial neural network was developed to determine the litigation risks. A training data set comprised of data from 201 policies was used to train an artificial neural network. The performance of the artificial neural network model was then assessed using a test data set comprised of data from 100 policies. In the research, a litigation risk estimation model was formed for liability insurance via an artificial neural network model. By comparing the litigation risks occurring in accounting professional liability insurance to those foreseen by the artificial neural network system, it was determined that the results were quite consistent. It was also determined that the realized results and the risks foreseen in the artificial neural network model provided data close to the real values and that the artificial neural network model could foresee the litigation risks in accounting professional liability insurance with a 99% success rate.

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