Fraud causes substantial costs and losses for companies and clients in the finance and insurance industries. Examples are fraudulent credit card transactions or fraudulent claims. It has been estimated that roughly 10 percent of the insurance industry's incurred losses and loss adjustment expenses each year stem from fraudulent claims. The rise and proliferation of digitization in finance and insurance has lead to big data sets, consisting in particular of text data, which can be used for fraud detection. In this paper we propose architectures for text embeddings via deep learning, which help to improve the detection of fraudulent claims compared to other machine learning methods. We illustrate our methods using a data set from a large international health insurance company. The empirical results show that our approach outperforms other state-of-the-art methods and can help make the claims management process more efficient. As (unstructured) text data become increaslingly available to economists and econometricians, our proposed methods will be valuable for many similar applications, particularly when variables have a large number of categories as is typical for example of the International Classification of Disease (ICD) codes in health economics and health services.

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Reinforcement learning (RL) enjoyed significant progress over the last years. One of the most important steps forward was the wide application of neural networks. However, architectures of these neural networks are typically constructed manually. In this work, we study recently proposed neural architecture search (NAS) methods for optimizing the architecture of RL agents. We carry out experiments on the Atari benchmark and conclude that modern NAS methods find architectures of RL agents outperforming a manually selected one.