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Generalized linear models (GLMs) using a regression procedure to fit relationships between predictor and target variables are widely used in automobile insurance data. Here, in the process of ratemaking and in order to compute the premiums…

Applications · Statistics 2016-06-02 J. M. Pérez-Sánchez , E. Gómez-Déniz

Insurance products frequently cover significant claims arising from a variety of sources. To model losses from these products accurately, actuarial models must account for high-severity claims. A widely used strategy is to apply a mixture…

Methodology · Statistics 2025-04-30 Sébastien Jessup , Mélina Mailhot , Mathieu Pigeon

We study the application of dynamic pricing to insurance. We view this as an online revenue management problem where the insurance company looks to set prices to optimize the long-run revenue from selling a new insurance product. We develop…

Econometrics · Economics 2019-07-12 Yuqing Zhang , Neil Walton

In general insurance, risks from different categories are often modeled independently and their sum is regarded as the total risk the insurer takes on in exchange for a premium. The dependence from multiple risks is generally neglected even…

Applications · Statistics 2019-04-10 Sen Hu , T Brendan Murphy , Adrian O'Hagan

Generalized linear models (GLMs) form one of the most popular classes of models in statistics. The gamma variant is used, for instance, in actuarial science for the modelling of claim amounts in insurance. A flaw of GLMs is that they are…

Methodology · Statistics 2024-02-12 Philippe Gagnon , Yuxi Wang

Vehicle insurance claims size prediction needs methods to efficiently handle these claims. Machine learning (ML) is one of the methods that solve this problem. Tree-based ensemble learning algorithms are highly effective and widely used ML…

Machine Learning · Computer Science 2023-02-22 Edossa Merga Terefe

Pricing actuaries typically operate within the framework of generalized linear models (GLMs). With the upswing of data analytics, our study puts focus on machine learning methods to develop full tariff plans built from both the frequency…

Applications · Statistics 2020-03-04 Roel Henckaerts , Marie-Pier Côté , Katrien Antonio , Roel Verbelen

The insurance industry, with its large datasets, is a natural place to use big data solutions. However it must be stressed, that significant number of applications for machine learning in insurance industry, like fraud detection or claim…

Statistical Finance · Quantitative Finance 2022-04-14 Sebastian Baran , Przemysław Rola

The prediction of future insurance claims based on observed risk factors, or covariates, help the actuary set insurance premiums. Typically, actuaries use parametric regression models to predict claims based on the covariate information.…

Methodology · Statistics 2026-04-14 Mostafa Shams Esfand Abadi , Kaushik Ghosh

It is illustrated a methodology to compute the pure premium for the automobile insurance (claim frequency and severity) using generalized linear models. It is obtained the pure premium for the partial damage loss cover (PPD) using a set of…

Risk Management · Quantitative Finance 2017-07-13 William Guevara-Alarcón , Luz Mery González , Armando Antonio Zarruk

Identifying factors that affect participation is key to a successful insurance scheme. This study's challenges involve using many factors that could affect insurance participation to make a better forecast.Huge numbers of factors affect…

General Economics · Economics 2022-12-20 Luigi Biagini , Simone Severini

This project works with the risk model developed by Li et al. (2015) and quests modelling, estimating and pricing insurance for risks brought in by innovative technologies, or other emerging or latent risks. The model considers two…

Statistics Theory · Mathematics 2019-05-20 Weihong Ni , Corina Constantinescu , Alfredo Egídio dos Reis , Véronique Maume-Deschamps

Nowadays insurers have to account for potentially complex dependence between risks. In the field of loss reserving, there are many parametric and non-parametric models attempting to capture dependence between business lines. One common…

Methodology · Statistics 2024-10-22 Andrew Fleck , Edward Furman , Yang Shen

In this paper, we address the identification and estimation of insurance models where insurees have private information about their risk and risk aversion. The model includes random damages and allows for several claims, while insurers…

General Economics · Economics 2024-10-14 Gaurab Aryal , Isabelle Perrigne , Quang Vuong , Haiqing Xu

A common approach to the claims reserving problem is based on generalized linear models (GLM). Within this framework, the claims in different origin and development years are assumed to be independent variables. If this assumption is…

Applications · Statistics 2013-06-18 Šárka Hudecová , Michal Pešta

Generalized linear mixed models (GLMM) encompass large class of statistical models, with a vast range of applications areas. GLMM extends the linear mixed models allowing for different types of response variable. Three most common data…

Applications · Statistics 2017-04-25 Wagner Hugo Bonat , Paulo Justiniano Ribeiro , Silvia emiko Shimakura

The use of bonus-malus systems in compulsory liability automobile insurance is a worldwide applied method for premium pricing. If certain assumptions hold, like the conditional Poisson distribution of the policyholders claim number, then an…

Applications · Statistics 2012-03-06 Miklós Arató , László Martinek

In a context of constant increase in competition and heightened regulatory pressure, accuracy, actuarial precision, as well as transparency and understanding of the tariff, are key issues in non-life insurance. Traditionally used…

Applications · Statistics 2025-03-28 Markéta Krùpovà , Nabil Rachdi , Quentin Guibert

The paper introduces an approach to telematics devices data application in automotive insurance. We conduct a comparative analysis of different types of devices that collect information on vehicle utilization and driving style of its…

Applications · Statistics 2019-10-07 Konstantin Korishchenko , Ivan Stankevich , Nikolay Pilnik , Daria Petrova

Modeling insurance claim amounts and classifying claims into different risk levels are critical yet challenging tasks. Traditional predictive models for insurance claims often overlook the valuable information embedded in claim…

Applications · Statistics 2024-10-08 Yanxi Hou , Xiaolan Xia , Guangyuan Gao
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