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In actuarial research, a task of particular interest and importance is to predict the loss cost for individual risks so that informative decisions are made in various insurance operations such as underwriting, ratemaking, and capital…

Applications · Statistics 2019-10-15 Peng Shi , Zifeng Zhao

Despite decades of research in risk management, most of the literature has focused on scalar risk measures (like e.g. Value-at-Risk and Expected Shortfall). While such scalar measures provide compact and tractable summaries, they provide a…

Risk Management · Quantitative Finance 2025-11-28 Michele Bonollo , Martino Grasselli , Gianmarco Mori , Havva Nilsu Oz

Federated Learning (FL) holds great promise for digital health by enabling collaborative model training without compromising patient data privacy. However, heterogeneity across institutions, lack of sustained reputation, and unreliable…

Machine Learning · Computer Science 2025-05-23 Navid Seidi , Satyaki Roy , Sajal Das

Understanding user preference is essential to the optimization of recommender systems. As a feedback of user's taste, rating scores can directly reflect the preference of a given user to a given product. Uncovering the latent components of…

Information Retrieval · Computer Science 2017-10-20 Junhua Chen , Wei Zeng , Junming Shao , Ge Fan

We propose a novel strategy for multivariate extreme value index estimation. In applications such as finance, volatility and risk present in the components of a multivariate time series are often driven by the same underlying factors, such…

Statistics Theory · Mathematics 2020-03-24 Joni Virta , Niko Lietzén , Lauri Viitasaari , Pauliina Ilmonen

Estimating the covariance of asset returns, i.e., the risk model, is a key component of financial portfolio construction and evaluation. Most risk modeling approaches produce a factor model that decomposes the asset variability into two…

Hidden Markov models are widely used for modeling sequential data but typically have limited applicability in observational causal inference due to their strong conditional independence assumptions. I introduce feedback-augmented…

Methodology · Statistics 2025-03-21 Jouni Helske

Joint models initially dedicated to a single longitudinal marker and a single time-to-event need to be extended to account for the rich longitudinal data of cohort studies. Multiple causes of clinical progression are indeed usually…

Applications · Statistics 2016-01-26 Cécile Proust-Lima , Jean-François Dartigues , Hélène Jacqmin-Gadda

Federated Learning (FL) has emerged as a leading privacy-preserving machine learning paradigm, enabling participants to share model updates instead of raw data. However, FL continues to face key challenges, including weak client incentives,…

Artificial Intelligence · Computer Science 2025-12-17 Sindhuja Madabushi , Dawood Wasif , Jin-Hee Cho

Systemic risk is receiving increasing attention in the insurance industry. In this paper, we propose a multi-dimensional L\'{e}vy process-based renewal risk model with heterogeneous insurance claims, where every dimension indicates a…

Risk Management · Quantitative Finance 2025-12-17 Bingzhen Geng , Yang Liu , Hongfu Wan

The lifetime behaviour of loans is notoriously difficult to model, which can compromise a bank's financial reserves against future losses, if modelled poorly. Therefore, we present a data-driven comparative study amongst three techniques in…

Risk Management · Quantitative Finance 2026-04-22 Arno Botha , Tanja Verster , Roland Breedt

We utilise a sampler originating from nonequilibrium statistical mechanics, termed here Jarzynski-adjusted Langevin algorithm (JALA), to build statistical estimation methods in latent variable models. We achieve this by leveraging…

Computation · Statistics 2025-10-27 James Cuin , Davide Carbone , O. Deniz Akyildiz

Measuring the contribution of a bank or an insurance company to overall systemic risk is a key concern, particularly in the aftermath of the 2007--2009 financial crisis and the 2020 downturn. In this paper, we derive worst-case and…

Risk Management · Quantitative Finance 2025-11-18 Jinghui Chen , Edward Furman , X. Sheldon Lin

While discrete latent variable models have had great success in self-supervised learning, most models assume that frames are independent. Due to the segmental nature of phonemes in speech perception, modeling dependencies among latent…

Computation and Language · Computer Science 2022-11-01 Sung-Lin Yeh , Hao Tang

We consider the problem of measuring how much a system reveals about its secret inputs. We work under the black-box setting: we assume no prior knowledge of the system's internals, and we run the system for choices of secrets and measure…

Cryptography and Security · Computer Science 2020-10-28 Giovanni Cherubin , Konstantinos Chatzikokolakis , Catuscia Palamidessi

Generative machine learning models are being increasingly viewed as a way to share sensitive data between institutions. While there has been work on developing differentially private generative modeling approaches, these approaches…

Cryptography and Security · Computer Science 2022-10-13 Yixi Xu , Sumit Mukherjee , Xiyang Liu , Shruti Tople , Rahul Dodhia , Juan Lavista Ferres

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

Vehicle telematics provides granular data for dynamic driving risk assessment, but current methods often rely on aggregated metrics (e.g., harsh braking counts) and do not fully exploit the rich time-series structure of telematics data. In…

Applications · Statistics 2025-05-28 Ian Weng Chan , Andrei L. Badescu , X. Sheldon Lin

Models with latent factors recently attract a lot of attention. However, most investigations focus on linear regression models and thus cannot capture nonlinearity. To address this issue, we propose a novel Factor Augmented Single-Index…

Methodology · Statistics 2025-01-07 Yanmei Shi , Meiling Hao , Yanlin Tang , Heng Lian , Xu Guo

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