MEDICAL INSURANCE PREMIUM PREDICTION WITH MACHINE LEARNING

Abstract

A machine learning method for predicting health insurance rates is presented in this article. With healthcare expenditures becoming more complex, it is critical for insurance companies and policyholders to accurately estimate insurance prices. Utilizing a dataset that included medical history, demographic data, and other pertinent variables, a variety of machine learning techniques, such as ensemble methods and regression, were used to create prediction models. R-Squared and mean absolute error were two measures used to assess these models' performance. According to the developed models' results, insurance premiums can be predicted with accuracy, offering useful information for insurance counteragents. This approach has the potential to optimize pricing strategies, enhance risk assessment, and improve decision-making in the healthcare insurance sector. Machine Learning-Based Prediction of Medical Insurance Premiums Make predictions about health insurance companies based on personal traits. A dataset of policyholder attributes (such as age, gender, BMI, number of children, smoking behaviors, and geography) was gathered and preprocessed .Divide the data into sets for testing and training. Create and train a model for an artificial neural network with TensorFlow and Karas. R-squared metrics and mean R-squared error were used to assess the performance of the model. created a high R-Squared predictive model that was accurate. determined the main determinants of insurance rates. Machine learning has shown promise in estimating healthcare costs. This experiment demonstrates how well machine learning predicts medical insurance rates. Insurance companies may offer more individualized insurance plans, expedite the underwriting process, and help customers make well-informed decisions about their healthcare coverage by creating these predictive models. The created model can help policyholders make educated judgments and insurance companies establish proper prices. In the long run, our research helps the insurance industry enhance data-driven techniques, which benefits insurers as well as insured individuals in general.