Research on Premium Income Prediction Based on LSTM Neural Network

Abstract

As one of the four financial pillars, insurance has the functions of risk diversification, loss compensation, financing and social management. It is of great practical significance to predict the level of premium income in the new normal of economy. In this paper, long short-term memory (LSTM) neural network was innovatively applied to the study of premium income prediction. The monthly data of China's premium income from January 1999 to October 2019 was selected for prediction, and the prediction results were compared with BP neural network. The results show that LSTM model can accurately predict premium income, and its performance is better than BP neural network.