Health Insurance Cost Prediction using Machine Learning Algorithms

Abstract

Insurance is the policy people buy to preserve themselves from losing money if something awful happens to them or their belongings. Insurance can be provided to the individuals for their health, car, education, business, home etc. Among them, health insurance plays the vital role as humans are prone to many deadly diseases and accidents nowadays. The cost of medical treatment is unbelievable and unbearable. In this study, health insurance cost is predicted by Machine Learning algorithms such as Multinomial Logistic Regression and Random Forest. Comparing the performance measures of the algorithms, gives the better way to understand and also gives the determination about the best algorithm to be used for cost prediction.