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Every time drivers take to the road, and with each mile that they drive, exposes themselves and others to the risk of an accident. Insurance premiums are only weakly linked to mileage, however, and have lump-sum characteristics largely. The…

风险管理 · 定量金融 2020-03-11 Safoora Zarei , Ali R. Fallahi

In statistical exercises where there are several candidate models, the traditional approach is to select one model using some data driven criterion and use that model for estimation, testing and other purposes, ignoring the variability of…

统计理论 · 数学 2008-12-18 Snigdhansu Chatterjee , Nitai D. Mukhopadhyay

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

This paper develops a dynamic insurance market model comprising two competing insurance companies and a continuum of insureds, and examines the interaction between strategic underreporting by the insureds and competitive pricing between the…

数理金融 · 定量金融 2026-01-21 Zongxia Liang , Jiayu Zhang , Zhou Zhou , Bin Zou

Surrender poses one of the major risks to life insurance and a sound modeling of its true probability has direct implication on the risk capital demanded by the Solvency II directive. We add to the existing literature by performing…

风险管理 · 定量金融 2021-08-30 Mark Kiermayer

Bonus-Malus Systems traditionally consider a customer's number of claims irrespective of their sizes, even though these components are dependent in practice. We propose a novel joint experience rating approach based on latent Markovian risk…

应用统计 · 统计学 2022-10-10 Robert Matthijs Verschuren

We investigate the role of reinsurance in maximizing the wealth of an insurance company. We use Liu's uncertainty theory (B. Liu, 2007) for the problem modeling and follow-up computations. The uncertainty measure of ruin for the insurance…

最优化与控制 · 数学 2021-01-19 Wrya Vakili , Alireza Ghaffari-Hadigheh

Advanced classification algorithms are being increasingly used in safety-critical applications like health-care, engineering, etc. In such applications, miss-classifications made by ML algorithms can result in substantial financial or…

机器学习 · 计算机科学 2024-12-06 Disha Ghandwani , Neeraj Sarna , Yuanyuan Li , Yang Lin

We consider a generalization of the classical risk model when the premium intensity depends on the current surplus of an insurance company. All surplus is invested in the risky asset, the price of which follows a geometric Brownian motion.…

概率论 · 数学 2014-03-28 Yuliya Mishura , Mykola Perestyuk , Olena Ragulina

This paper studies optimal insurance design under asymmetric information in a Stackelberg framework, where a monopolistic insurer faces uncertainty about both the insured's risk attitude, captured by a risk-aversion parameter, and the…

风险管理 · 定量金融 2026-04-20 Xia Han , Bin Li

The paper proposes an original methodology for constructing quantitative statistical models based on multidimensional distribution functions constructed on the basis of the insurance companies' data on inshurance policies (including…

风险管理 · 定量金融 2019-08-15 Valery Baskakov , Nikolay Sheparnev , Evgeny Yanenko

This paper proposes a flexible and analytically tractable class of frequency and severity models for predicting insurance claims. The proposed model is able to capture nonlinear relationships in explanatory variables by characterizing the…

计量经济学 · 经济学 2025-04-01 Dong-Young Lim

In this paper we consider pricing of insurance contracts for breast cancer risk based on three multiple state models. Using population data in England and data from the medical literature, we calibrate a collection of semi-Markov and Markov…

Pricing actuaries typically operate within the framework of generalized linear models (GLMs). With the upswing of data analytics, our study puts focus on machine learning methods to develop full tariff plans built from both the frequency…

应用统计 · 统计学 2020-03-04 Roel Henckaerts , Marie-Pier Côté , Katrien Antonio , Roel Verbelen

Rapidly advancing artificial intelligence (AI) systems introduce novel, uncertain, and potentially catastrophic risks. Managing these risks requires a mature risk-management infrastructure whose cornerstone is rigorous risk modeling. We…

The primary objective of this scholarly work is to develop two estimation procedures - maximum likelihood estimator (MLE) and method of trimmed moments (MTM) - for the mean and variance of lognormal insurance payment severity data sets…

统计方法学 · 统计学 2024-02-22 Chudamani Poudyal

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…

统计金融 · 定量金融 2022-04-14 Sebastian Baran , Przemysław Rola

Recent advances in computing power and the potential to make more realistic assumptions due to increased flexibility have led to the increased prevalence of simulation models in economics. While models of this class, and particularly…

综合经济学 · 经济学 2019-06-12 Donovan Platt

Measuring model risk is required by regulators on financial and insurance markets. We separate model risk into parameter estimation risk and model specification risk, and we propose expected shortfall type model risk measures applied to…

计量经济学 · 经济学 2020-10-29 Emese Lazar , Shuyuan Qi , Radu Tunaru

Actuaries use predictive modeling techniques to assess the loss cost on a contract as a function of observable risk characteristics. State-of-the-art statistical and machine learning methods are not well equipped to handle hierarchically…

应用统计 · 统计学 2023-02-01 Bavo D. C. Campo , Katrien Antonio