Fuzzy logic in insurance

The insurance industry has numerous areas with potential applications for fuzzy logic (FL). These include classification, underwriting, projected liabilities, fuzzy future and present values, pricing, asset allocations and cash flows, and investment. Given this potential and the impetus on FL during the last decade, it is not surprising that a number of FL studies have focused on insurance applications. This article presents an overview of these studies. The specific purposes of the article are two-fold: first, to review FL applications in insurance so as to document the unique characteristics of insurance as an application area; and second, to document the extent to which FL technologies have been employed.