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This paper is concerned with forecast error, particularly in relation to loss reserving. This is generally regarded as consisting of three components, namely parameter, process and model errors. The first two of these components, and their…

Methodology · Statistics 2022-10-04 G Taylor , G McGuire

Experience rating in insurance uses a Bayesian credibility model to upgrade the current premiums of a contract by taking into account policyholders' attributes and their claim history. Most data-driven models used for this task are…

Methodology · Statistics 2024-06-13 Sebastian Calcetero-Vanegas , Andrei L. Badescu , X. Sheldon Lin

Insurers are increasingly adopting more demand-based strategies to incorporate the indirect effect of premium changes on their policyholders' willingness to stay. However, since in practice both insurers' renewal premia and customers'…

Applications · Statistics 2022-10-10 Robert Matthijs Verschuren

In this paper, we review and apply several approaches to model selection for analysis of variance models which are used in a credibility and insurance context. The reversible jump algorithm is employed for model selection, where posterior…

Applications · Statistics 2010-12-22 Garfield Brown , Winston Buckley

Variable selection is crucial for sparse modeling in this age of big data. Missing values are common in data, and make variable selection more complicated. The approach of multiple imputation (MI) results in multiply imputed datasets for…

Methodology · Statistics 2025-09-04 Yong-Shiuan Lee

Several phenomena are available representing market activity: volumes, number of trades, durations between trades or quotes, volatility - however measured - all share the feature to be represented as positive valued time series. When…

Statistical Finance · Quantitative Finance 2021-07-14 Fabrizio Cipollini , Giampiero M. Gallo

We investigate, focusing on the ruin probability, an adaptation of the Cramer-Lundberg model for the surplus process of an insurance company, in which, conditionally on their intensities, the two mixed Poisson processes governing the…

Mathematical Finance · Quantitative Finance 2017-06-27 Matija Vidmar

We develop an active inference route-planning method for the autonomous control of intelligent agents. The aim is to reconnoiter a geographical area to maintain a common operational picture. To achieve this, we construct an evidence map…

Artificial Intelligence · Computer Science 2025-10-21 Johan Schubert , Farzad Kamrani , Tove Gustavi

Conditions for positive and polynomial recurrence have been proposed for a class of reliability models of two elements with transitions from working state to failure and back. As a consequence, uniqueness of stationary distribution of the…

Probability · Mathematics 2020-05-29 Alexander Veretennikov

Deep reinforcement learning has emerged as a powerful tool for obtaining high-performance policies. However, the safety of these policies has been a long-standing issue. One promising paradigm to guarantee safety is a shield, which shields…

Logic in Computer Science · Computer Science 2025-06-17 Asger Horn Brorholt , Kim Guldstrand Larsen , Christian Schilling

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

To make medium- and long-term insurance products attractive, it is essential to enable participation in stock market returns. However, to eliminate downside risk, guarantees must be included, which naturally leads to the challenge of…

Mathematical Finance · Quantitative Finance 2025-10-09 Raquel M. Gaspar , Thorsten Schmidt

We introduce new approaches for forecasting IBNR (Incurred But Not Reported) frequencies by leveraging individual claims data, which includes accident date, reporting delay, and possibly additional features for every reported claim. A key…

Methodology · Statistics 2025-10-27 Munir Hiabu , Emil Hofman , Gabriele Pittarello

In this paper, the intra-day multi-interval rolling-window joint dispatch and pricing of energy and reserve is studied under increasing volatile and uncertain renewable generations. A look-ahead energy-reserve co-optimization model is…

Systems and Control · Electrical Eng. & Systems 2023-08-09 Jiantao Shi , Ye Guo , Wenchuan Wu , Hongbin Sun

Recent work has considered theoretical models for the behavior of agents with specific behavioral biases: rather than making decisions that optimize a given payoff function, the agent behaves inefficiently because its decisions suffer from…

Computer Science and Game Theory · Computer Science 2017-06-06 Jon Kleinberg , Sigal Oren , Manish Raghavan

Predicting species distributions using occupancy models accounting for imperfect detection is now commonplace in ecology. Recently, modelling spatial and temporal autocorrelation was proposed to alleviate the lack of replication in…

Applications · Statistics 2025-10-10 André Luís Luza , Didier Alard , Frédéric Barraquand

Clinical prediction models (CPMs) are used to predict clinically relevant outcomes or events. Typically, prognostic CPMs are derived to predict the risk of a single future outcome. However, with rising emphasis on the prediction of…

Methodology · Statistics 2020-10-29 Glen P. Martin , Matthew Sperrin , Kym I. E. Snell , Iain Buchan , Richard D. Riley

The study deals with the assessment of risk measures for Health Plans in order to assess the Solvency Capital Requirement. For the estimation of the individual health care expenditure for several episode types, we suggest an original…

Risk Management · Quantitative Finance 2020-11-19 Fabio Baione , Davide Biancalana , Paolo De Angelis

Machine learning can help personalized decision support by learning models to predict individual treatment effects (ITE). This work studies the reliability of prediction-based decision-making in a task of deciding which action $a$ to take…

Machine Learning · Statistics 2019-06-07 Iiris Sundin , Peter Schulam , Eero Siivola , Aki Vehtari , Suchi Saria , Samuel Kaski

This paper focuses on linearisation techniques for a class of mixed singular/continuous control problems and ensuing algorithms. The motivation comes from (re)insurance problems with reserve-dependent premiums with Cram{\'e}r-Lundberg…

Optimization and Control · Mathematics 2022-06-22 Dan Goreac , Juan Li , Boxiang Xu