Deep Learning

Abstract

AbstractThe core of this book are deep learning methods and neural networks. This chapter considers deep feed-forward neural (FN) networks. We introduce the generic architecture of deep FN networks, and we discuss universality theorems of FN networks. We present network fitting, back-propagation, embedding layers for categorical variables and insurance-specific issues such as the balance property in network fitting, as well as network ensembling to reduce model uncertainty. This chapter is complemented by many examples on non-life insurance pricing, but also on mortality modeling, as well as tools that help to explain deep FN network regression results.