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A well-designed framework for risk classification and ratemaking in automobile insurance is key to insurers' profitability and risk management, while also ensuring that policyholders are charged a fair premium according to their risk…

Applications · Statistics 2022-10-03 Spark C. Tseung , Ian Weng Chan , Tsz Chai Fung , Andrei L. Badescu , X. Sheldon Lin

In this paper, non-life insurance claims were modelled under the three parameter discrete generalised Pareto distribution. Data from the National Insurance Commission of Ghana on reported and settled claims were considered for the period…

Methodology · Statistics 2020-04-15 S. K-B. Dzidzornu , R. Minkah

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

We propose a stochastic model allowing property and casualty insurers with multiple business lines to measure their liabilities for incurred claims risk and calculate associated capital requirements. Our model includes many desirable…

Risk Management · Quantitative Finance 2021-12-07 Carlos Andrés Araiza Iturria , Frédéric Godin , Mélina Mailhot

A Bonus-Malus System (BMS) in insurance is a premium adjustment mechanism widely used in a posteriori ratemaking process to set the premium for the next contract period based on a policyholder's claim history. The current practice in BMS…

Applications · Statistics 2019-03-15 Rosy Oh , Peng Shi , Jae Youn Ahn

Trade credit insurance (TCI) is a specialized line of property and casualty insurance, protecting businesses against financial losses due to buyer's insolvency. Predictive modeling for TCI claims poses formidable challenges due to the…

Applications · Statistics 2025-09-26 Woongchae Yoo , Spark C. Tseung , Tsz Chai Fung

We propose a dependence-aware predictive modeling framework for multivariate risks stemmed from an insurance contract with bundling features - an important type of policy increasingly offered by major insurance companies. The bundling…

Methodology · Statistics 2023-10-17 Peng Shi , Zifeng Zhao

The occurrence of a claim often impacts not one but multiple insurance coverages provided in the contract. To account for this multivariate feature, we propose a new individual claims reserving model built around the activation of the…

Mathematical Finance · Quantitative Finance 2023-08-16 Marie Michaelides , Mathieu Pigeon , Hélène Cossette

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

We pursue tractable Bayesian analysis of generalized linear models (GLMs) for categorical data. Thus far, GLMs are difficult to scale to more than a few dozen categories due to non-conjugacy or strong posterior dependencies when using…

Machine Learning · Statistics 2022-06-02 Michael T. Wojnowicz , Shuchin Aeron , Eric L. Miller , Michael C. Hughes

In the classical Bonus-Malus System (BMS) in automobile insurance, the premium for the next year is adjusted according to the policyholder's claim history (particularly frequency) in the previous year. Some variations of the classical BMS…

Applications · Statistics 2021-06-08 Jae Youn Ahn , Eric C. K. Cheung , Rosy Oh , Jae-Kyung Woo

This paper explores generalised probabilistic modelling and uncertainty estimation in comparative LLM-as-a-judge frameworks. We show that existing Product-of-Experts methods are specific cases of a broader framework, enabling diverse…

Artificial Intelligence · Computer Science 2025-05-22 Yassir Fathullah , Mark J. F. Gales

In auto insurance, a Bonus-Malus System (BMS) is commonly used as a posteriori risk classification mechanism to set the premium for the next contract period based on a policyholder's claim history. Even though recent literature reports…

Applications · Statistics 2020-03-05 Rosy Oh , Joseph H. T. Kim , Jae Youn Ahn

Process Reward Models (PRMs) are crucial for guiding Large Language Models (LLMs) in complex scenarios by providing dense reward signals. However, existing PRMs primarily rely on heuristic approaches, which struggle with cross-domain…

Computation and Language · Computer Science 2025-07-25 Zhangyue Yin , Qiushi Sun , Zhiyuan Zeng , Qinyuan Cheng , Xipeng Qiu , Xuanjing Huang

Automating the customer analytics process is crucial for companies that manage distinct customer bases. In such data-rich and dynamic environments, visualization plays a key role in understanding events of interest. These ideas have led to…

Applications · Statistics 2016-03-03 Ryan Dew , Asim Ansari

Prediction modelling of claim frequency is an important task for pricing and risk management in non-life insurance and needed to be updated frequently with the changes in the insured population, regulatory legislation and technology.…

Applications · Statistics 2023-01-10 Jiakun Jiang , Zhengxiao Li , Liang Yang

Graph-based methods are becoming increasingly popular in machine learning due to their ability to model complex data and relations. Insurance fraud is a prime use case, since fraudulent claims are often the result of organised criminals…

Machine Learning · Computer Science 2026-05-18 Félix Vandervorst , Bruno Deprez , Wouter Verbeke , Tim Verdonck

This paper develops a dynamic insurance market model comprising two competing insurance companies and a continuum of insureds, and examines the interaction between strategic underreporting by the insureds and competitive pricing between the…

Mathematical Finance · Quantitative Finance 2026-01-21 Zongxia Liang , Jiayu Zhang , Zhou Zhou , Bin Zou

Maintaining the predictive performance of pricing models is challenging when insurance portfolios and data-generating mechanisms evolve over time. Focusing on non-life insurance, we adopt the concept-drift terminology from machine learning…

Machine Learning · Statistics 2025-12-09 Alexej Brauer , Paul Menzel , Mario V. Wüthrich

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