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Related papers: A Neural Frequency-Severity Model and Its Applicat…

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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

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

Insurance companies make extensive use of Monte Carlo simulations in their capital and solvency models. To overcome the computational problems associated with Monte Carlo simulations, most large life insurance companies use proxy models…

Computational Finance · Quantitative Finance 2023-06-22 Lucio Fernandez-Arjona

In general insurance companies, a correct estimation of liabilities plays a key role due to its impact on management and investing decisions. Since the Financial Crisis of 2007-2008 and the strengthening of regulation, the focus is not only…

Risk Management · Quantitative Finance 2022-05-17 Eduardo Ramos-Pérez , Pablo J. Alonso-González , José Javier Núñez-Velázquez

Recent years have seen rapid increase in the application of machine learning to insurance loss reserving. They yield most value when applied to large data sets, such as individual claims, or large claim triangles. In short, they are likely…

Risk Management · Quantitative Finance 2021-08-27 Benjamin Avanzi , Gregory Clive Taylor , Melantha Wang , Bernard Wong

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

The use of models, even if efficient, must be accompanied by an understanding at all levels of the process that transforms data (upstream and downstream). Thus, needs increase to define the relationships between individual data and the…

Machine Learning · Statistics 2022-09-02 Dimitri Delcaillau , Antoine Ly , Alize Papp , Franck Vermet

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

Accidental damage is a typical component of motor insurance claim. Modeling of this nature generally involves analysis of past claim history and different characteristics of the insured objects and the policyholders. Generalized linear…

Applications · Statistics 2017-10-11 Sen Hu , Adrian O'Hagan , Thomas Brendan Murphy

In this paper, we investigate the influence of claims in analyst reports and earnings calls on financial market returns, considering them as significant quarterly events for publicly traded companies. To facilitate a comprehensive analysis,…

Computation and Language · Computer Science 2024-10-08 Agam Shah , Arnav Hiray , Pratvi Shah , Arkaprabha Banerjee , Anushka Singh , Dheeraj Eidnani , Sahasra Chava , Bhaskar Chaudhury , Sudheer Chava

This paper proposes three types of Bayesian CART (or BCART) models for aggregate claim amount, namely, frequency-severity models, sequential models and joint models. We propose a general framework for the BCART models applicable to data…

Methodology · Statistics 2025-08-04 Yaojun Zhang , Lanpeng Ji , Georgios Aivaliotis , Charles C. Taylor

Accuracy and interpretability of a (non-life) insurance pricing model are essential qualities to ensure fair and transparent premiums for policy-holders, that reflect their risk. In recent years, the classification and regression trees…

Machine Learning · Statistics 2023-12-04 Yaojun Zhang , Lanpeng Ji , Georgios Aivaliotis , Charles Taylor

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

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

Parametric statistical methods play a central role in analyzing risk through its underlying frequency and severity components. Given the wide availability of numerical algorithms and high-speed computers, researchers and practitioners often…

Applications · Statistics 2025-06-17 Michael R. Powers , Jiaxin Xu

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

We develop a model for contagion in reinsurance networks by which primary insurers' losses are spread through the network. Our model handles general reinsurance contracts, such as typical excess of loss contracts. We show that simpler…

Risk Management · Quantitative Finance 2020-03-25 Ariah Klages-Mundt , Andreea Minca

We present neural frailty machine (NFM), a powerful and flexible neural modeling framework for survival regressions. The NFM framework utilizes the classical idea of multiplicative frailty in survival analysis to capture unobserved…

Machine Learning · Computer Science 2023-10-05 Ruofan Wu , Jiawei Qiao , Mingzhe Wu , Wen Yu , Ming Zheng , Tengfei Liu , Tianyi Zhang , Weiqiang Wang

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

Insurance industry is one of the most vulnerable sectors to climate change. Assessment of future number of claims and incurred losses is critical for disaster preparedness and risk management. In this project, we study the effect of…

Applications · Statistics 2021-03-17 Asim K. Dey , Vyacheslav Lyubchich , Yulia R. Gel