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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…

With the rise of emerging risks, model uncertainty poses a fundamental challenge in the insurance industry, making robust pricing a first-order question. This paper investigates how insurers' robustness preferences shape competitive…

风险管理 · 定量金融 2025-10-20 Shunzhi Pang

In order to determine a suitable automobile insurance policy premium one needs to take into account three factors, the risk associated with the drivers and cars on the policy, the operational costs associated with management of the policy…

机器学习 · 计算机科学 2022-09-08 Patrick Hosein

The non-life insurance sector operates within a highly competitive and tightly regulated framework, confronting a pivotal juncture in the formulation of pricing strategies. Insurers are compelled to harness a range of statistical…

机器学习 · 统计学 2024-06-21 Mulah Moriah , Franck Vermet , Arthur Charpentier

Pricing insurance for risks associated with information technology systems presents a complex modelling challenge, combining the disciplines of operations management, security, and economics. This work proposes a socioeconomic modelling…

综合经济学 · 经济学 2023-10-05 Henry Skeoch , David Pym

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…

应用统计 · 统计学 2022-10-03 Spark C. Tseung , Ian Weng Chan , Tsz Chai Fung , Andrei L. Badescu , X. Sheldon Lin

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

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…

应用统计 · 统计学 2017-10-11 Sen Hu , Adrian O'Hagan , Thomas Brendan Murphy

In the literature, insurance and reinsurance pricing is typically determined by a premium principle, characterized by a risk measure that reflects the policy seller's risk attitude. Building on the work of Meyers (1980) and Chen et al.…

风险管理 · 定量金融 2025-07-08 Ziyue Shi , David Landriault , Fangda Liu

We focus on model risk and risk sensitivity when addressing the insurability of cyber risk. The standard statistical approaches to assessment of insurability and potential mispricing are enhanced in several aspects involving consideration…

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

We present an analytical study of an insurance company. We model the company's performance on a statistical basis and evaluate the predicted annual income of the company in terms of insurance parameters namely the premium, total number of…

统计力学 · 物理学 2008-12-10 M. Ebrahim Fouladvand , Amir H. Darooneh

Existing approaches to asset-pricing under model-uncertainty adapt classical utility-maximization frameworks and seek theoretical comprehensiveness. We move toward practice by considering binary model-risks and by emphasizing 'constraints'…

数理金融 · 定量金融 2025-10-10 Ken Kangda Wren

A delay between the occurrence and the reporting of events often has practical implications such as for the amount of capital to hold for insurance companies, or for taking preventive actions in case of infectious diseases. The accurate…

应用统计 · 统计学 2021-06-24 Roel Verbelen , Katrien Antonio , Gerda Claeskens , Jonas Crevecoeur

Modeling insurance claim amounts and classifying claims into different risk levels are critical yet challenging tasks. Traditional predictive models for insurance claims often overlook the valuable information embedded in claim…

应用统计 · 统计学 2024-10-08 Yanxi Hou , Xiaolan Xia , Guangyuan Gao

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…

综合经济学 · 经济学 2024-10-14 Gaurab Aryal , Isabelle Perrigne , Quang Vuong , Haiqing Xu

Technology trends as digitalization and Industry 4.0 initiate a growing demand for new business models. Most of this models requires a fundamental shift of operational and financial risks between seller and buyer. A key question is…

数理金融 · 定量金融 2022-12-20 Roger Knecktys , Henrik Bette , Rüdiger Kiesel , Thomas Guhr

Typical risk classification procedure in insurance is consists of a priori risk classification determined by observable risk characteristics, and a posteriori risk classification where the premium is adjusted to reflect the policyholder's…

应用统计 · 统计学 2020-02-04 Rosy Oh , Youngju Lee , Dan Zhu , Jae Youn Ahn

The cyber risk insurance market is at a nascent stage of its development, even as the magnitude of cyber losses is significant and the rate of cyber loss events is increasing. Existing cyber risk insurance products as well as academic…

最优化与控制 · 数学 2023-10-09 Qikun Xiang , Ariel Neufeld , Gareth W. Peters , Ido Nevat , Anwitaman Datta

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
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