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In this paper, we explore advanced modifications to the Tweedie regression model in order to address its limitations in modeling aggregate claims for various types of insurance such as automobile, health, and liability. Traditional Tweedie…

Machine Learning · Computer Science 2024-10-29 Banghee So , Emiliano A. Valdez

The Tweedie generalized linear models are commonly applied in the insurance industry to analyze semicontinuous claim data. For better prediction of the aggregated claim size, the mean and dispersion of the Tweedie model are often estimated…

Methodology · Statistics 2024-05-27 Yuwen Gu

The Tweedie GLM is a widely used method for predicting insurance premiums. However, the structure of the logarithmic mean is restricted to a linear form in the Tweedie GLM, which can be too rigid for many applications. As a better…

Methodology · Statistics 2016-04-22 Yi Yang , Wei Qian , Hui Zou

The Tweedie Compound Poisson-Gamma model is routinely used for modeling non-negative continuous data with a discrete probability mass at zero. Mixed models with random effects account for the covariance structure related to the grouping…

Machine Learning · Statistics 2019-02-05 Yaodong Yang , Rui Luo , Yuanyuan Liu

The property and casualty (P&C) insurance industry faces challenges in developing claim predictive models due to the highly right-skewed distribution of positive claims with excess zeros. To address this, actuarial science researchers have…

Machine Learning · Computer Science 2024-06-19 Banghee So

We propose a new class of discrete generalized linear models based on the class of Poisson-Tweedie factorial dispersion models with variance of the form $\mu + \phi\mu^p$, where $\mu$ is the mean, $\phi$ and $p$ are the dispersion and…

We introduce a new class of Poisson-exponential-Tweedie (PET) mixture in the framework of generalized linear models for ultra-overdispersed count data. The mean-variance relationship is of the form $m+m^{2}+\phi m^{p}$, where $\phi$ and $p$…

Methodology · Statistics 2019-08-26 Rahma Abid , Celestin C. Kokonendji , Afif Masmoudi

Tweedie regression models provide a flexible family of distributions to deal with non-negative highly right-skewed data as well as symmetric and heavy tailed data and can handle continuous data with probability mass at zero. The estimation…

Methodology · Statistics 2017-04-25 Wagner H. Bonat , Célestin C. Kokonendji

Many single-target regression problems require estimates of uncertainty along with the point predictions. Probabilistic regression algorithms are well-suited for these tasks. However, the options are much more limited when the prediction…

Machine Learning · Statistics 2021-06-08 Michael O'Malley , Adam M. Sykulski , Rick Lumpkin , Alejandro Schuler

Based on the recent paper by Delong et al. (2021), two distributions for the total claims amount (loss cost) are considered: Compound Poisson-gamma (CPG) and Tweedie. Each is used as an underlying distribution in the Bonus-Malus Scale (BMS)…

Applications · Statistics 2023-11-07 Jean-Philippe Boucher , Raïssa Coulibaly

Pattern recognition applications often suffer from skewed data distributions between classes, which may vary during operations w.r.t. the design data. Two-class classification systems designed using skewed data tend to recognize the…

Machine Learning · Computer Science 2019-12-02 Roghayeh Soleymani , Eric Granger , Giorgio Fumera

Latent Gaussian models and boosting are widely used techniques in statistics and machine learning. Tree-boosting shows excellent prediction accuracy on many data sets, but potential drawbacks are that it assumes conditional independence of…

Machine Learning · Computer Science 2022-08-24 Fabio Sigrist

Two-part models and Tweedie generalized linear models (GLMs) have been used to model loss costs for short-term insurance contract. For most portfolios of insurance claims, there is typically a large proportion of zero claims that leads to…

Applications · Statistics 2020-06-11 Zhiyu Quan , Zhiguo Wang , Guojun Gan , Emiliano A. Valdez

Boosting techniques and neural networks are particularly effective machine learning methods for insurance pricing. Often in practice, there are nevertheless endless debates about the choice of the right loss function to be used to train the…

Machine Learning · Statistics 2021-07-12 Michel Denuit , Arthur Charpentier , Julien Trufin

Gradient boosting from the field of statistical learning is widely known as a powerful framework for estimation and selection of predictor effects in various regression models by adapting concepts from classification theory. Current…

Methodology · Statistics 2020-11-03 Colin Griesbach , Benjamin Säfken , Elisabeth Waldmann

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

This research deals with the estimation and imputation of missing data in longitudinal models with a Poisson response variable inflated with zeros. A methodology is proposed that is based on the use of maximum likelihood, assuming that data…

Methodology · Statistics 2024-09-18 D. S. Martinez-Lobo , O. O. Melo , N. A. Cruz

We introduce a novel way to combine boosting with Gaussian process and mixed effects models. This allows for relaxing, first, the zero or linearity assumption for the prior mean function in Gaussian process and grouped random effects models…

Machine Learning · Computer Science 2024-11-06 Fabio Sigrist

This paper describes a compound Poisson-based random effects structure for modeling zero-inflated data. Data with large proportion of zeros are found in many fields of applied statistics, for example in ecology when trying to model and…

Applications · Statistics 2009-07-29 Marie-Pierre Etienne , Eric Parent , Benoit Hugues , Bernier Jacques

Introducing common shocks is a popular dependence modelling approach, with some recent applications in loss reserving. The main advantage of this approach is the ability to capture structural dependence coming from known relationships. In…

Risk Management · Quantitative Finance 2021-07-01 Benjamin Avanzi , Gregory Clive Taylor , Phuong Anh Vu , Bernard Wong
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