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This article, in a first step, considers two Bayes estimators for the relativity premium of a given Bonus--Malus system. It then develops a linear relativity premium that closes, in the sense of weighted mean square error loss, to such…

统计方法学 · 统计学 2017-01-20 Amir T. Payandeh Najafabadi , Mansoureh Sakizadeh

In decision-making under uncertainty, several criteria have been studied to aggregate the performance of a solution over multiple possible scenarios. This paper introduces a novel variant of ordered weighted averaging (OWA) for optimization…

最优化与控制 · 数学 2024-01-30 Werner Baak , Marc Goerigk , Adam Kasperski , Paweł Zieliński

The claim experience of the past is a very important information to calculate the fair price of an insurance contract. In a lot of European countries for instance the prices for motor car insurance depend on the number of claims the driver…

风险管理 · 定量金融 2010-09-22 Magda Schiegl

We consider the concept of equilibrium in economic systems from statistical mechanics viewpoint. A new method is suggested for computing the premium on this basis. The B\"{u}hlmann economic premium principle is derived as a special case of…

统计力学 · 物理学 2008-12-10 Amir H. Darooneh

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…

应用统计 · 统计学 2012-03-06 Miklós Arató , László Martinek

Obtaining more accurate equity value estimates is the starting point for stock selection, value-based indexing in a noisy market, and beating benchmark indices through tactical style rotation. Unfortunately, discounted cash flow, method of…

统计金融 · 定量金融 2008-12-02 Kenton K. Yee

In this manuscript we propose a method for pricing insurance products that cover not only traditional risks, but also unforeseen ones. By considering the Poisson process parameter to be a mixed random variable, we capture the heterogeneity…

This paper develops a practical framework for using observational data to audit the consumer surplus effects of AI-driven decisions, specifically in targeted pricing and algorithmic lending. Traditional approaches first estimate demand…

机器学习 · 统计学 2026-01-06 Zeyu Bian , Max Biggs , Ruijiang Gao , Zhengling Qi

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…

Decisions under uncertainty or with multiple objectives usually require the decision maker to formulate a preference regarding risks or trade-offs. If this preference is known, the ordered weighted averaging (OWA) criterion can be applied…

最优化与控制 · 数学 2023-08-02 Werner Baak , Marc Goerigk , Michael Hartisch

In many areas of industry and society, e.g., energy, healthcare, logistics, agents collect vast amounts of data that they deem proprietary. These data owners extract predictive information of varying quality and relevance from data…

理论经济学 · 经济学 2022-10-07 Aitazaz Ali Raja , Pierre Pinson , Jalal Kazempour , Sergio Grammatico

The risk premium of a policy is the sum of the pure premium and the risk loading. In the classification ratemaking process, generalized linear models are usually used to calculate pure premiums, and various premium principles are applied to…

应用统计 · 统计学 2022-01-07 Liang Yang , Zhengxiao Li , Shengwang Meng

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…

统计方法学 · 统计学 2024-06-13 Sebastian Calcetero-Vanegas , Andrei L. Badescu , X. Sheldon Lin

The bonus-malus system (BMS) is a widely used premium adjustment mechanism based on policyholder's claim history. Most auto insurance BMSs assume that policyholders in the same bonus-malus (BM) level share the same a posteriori risk…

应用统计 · 统计学 2019-10-24 Rosy Oh , Kyung Suk Lee , Sojung C. Park , Jae Youn Ahn

There are three principle paradigms of statistical inference: (i) Bayesian, (ii) information-based and (iii) frequentist inference. We describe an objective prior (the weighting or $w$-prior) which unifies objective Bayes and…

机器学习 · 统计学 2015-06-26 Colin H. LaMont , Paul A. Wiggins

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)…

应用统计 · 统计学 2023-11-07 Jean-Philippe Boucher , Raïssa Coulibaly

In the context of multicriteria decision making, the ordered weighted averaging (OWA) functions play a crucial role in aggregating multiple criteria evaluations into an overall assessment supporting the decision makers' choice. Determining…

人工智能 · 计算机科学 2018-04-19 Thuy Hong Nguyen

We consider computation of market values of bonus payments in multi-state with-profit life insurance. The bonus scheme consists of additional benefits bought according to a dividend strategy that depends on the past realization of financial…

风险管理 · 定量金融 2023-11-07 Jamaal Ahmad , Kristian Buchardt , Christian Furrer

The primary objective of this paper is to present an approach for recommender systems that can assimilate ranking to the voters or rankers so that recommendation can be made by giving priority to experts suggestion over usual…

信息检索 · 计算机科学 2021-05-04 Shahab Saquib Sohail , Jamshed Siddiqui , Rashid Ali , S. Hamid Hasan , M. Afshar Alam

We revisit the classical, full-fledged Bayesian model averaging (BMA) paradigm to ensemble pre-trained and/or lightly-finetuned foundation models to enhance the classification performance on image and text data. To make BMA tractable under…

机器学习 · 计算机科学 2025-05-29 Mijung Park
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