Some amazing news from RealRate today!
A video from Holger Bartel, our esteemed founder, has made 2nd place in actuview’s TOP10 most-viewed videos on AI.
Some clips can be seen here:
The videos are in German.
Holger Bartel, founder of RealRate, demonstrates how AI can offer explainable insights even when dealing with limited data, such as annual reports. By employing a structural neural network that constrains the typically dense layers, the model inherently becomes interpretable.
This methodology leverages graph theory and derivatives, employing a hybrid model. This model combines an expert system, defining data relationships through mathematical equations, with traditional supervised learning to determine preset model parameters.
Every parameter, and even each individual node within the network, becomes economically interpretable. This approach is applied specifically to German health insurers to establish a financial strength rating.
The outcomes are elucidated with a keen focus on the causal graph, highlighting the strengths and weaknesses of each insurer individually.
