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In the current insurance literature, prediction of insurance claims in the regression problem is often performed with a statistical model. This model-based approach may potentially suffer from several drawbacks: (i) model misspecification,…

机器学习 · 统计学 2025-09-30 Liang Hong

The Tweedie GLM is a widely used method for predicting insurance premiums. However, the structure of the logarithmic mean is restricted to a linear form in the Tweedie GLM, which can be too rigid for many applications. As a better…

统计方法学 · 统计学 2016-04-22 Yi Yang , Wei Qian , Hui Zou

We consider the optimal investment and marginal utility pricing problem of a risk averse agent and quantify their exposure to a small amount of model uncertainty. Specifically, we compute explicitly the first-order sensitivity of their…

数理金融 · 定量金融 2021-11-15 Jan Obloj , Johannes Wiesel

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…

统计理论 · 数学 2020-03-24 Joni Virta , Niko Lietzén , Lauri Viitasaari , Pauliina Ilmonen

Joint models of longitudinal and event-time data have been extensively studied and applied in many different fields. Estimation of joint models is challenging, most present procedures are computational expensive and have a strict…

统计方法学 · 统计学 2018-09-05 Yanqiao Zheng , Xiaobing Zhao , Xiaoqi Zhang

Modern market management systems continue to evolve due to the intentions to improve system security and reliability. This evolvement has been leading to a transition of market auction models from a deterministic structure with…

系统与控制 · 电气工程与系统科学 2021-02-22 Mohammad Ghaljehei , Mojdeh Khorsand

In general insurance, risks from different categories are often modeled independently and their sum is regarded as the total risk the insurer takes on in exchange for a premium. The dependence from multiple risks is generally neglected even…

应用统计 · 统计学 2019-04-10 Sen Hu , T Brendan Murphy , Adrian O'Hagan

Accuracy and interpretability of a (non-life) insurance pricing model are essential qualities to ensure fair and transparent premiums for policy-holders, that reflect their risk. In recent years, the classification and regression trees…

机器学习 · 统计学 2023-12-04 Yaojun Zhang , Lanpeng Ji , Georgios Aivaliotis , Charles Taylor

We focus on two particular aspects of model risk: the inability of a chosen model to fit observed market prices at a given point in time (calibration error) and the model risk due to recalibration of model parameters (in contradiction to…

风险管理 · 定量金融 2018-10-23 Yu Feng , Ralph Rudd , Christopher Baker , Qaphela Mashalaba , Melusi Mavuso , Erik Schlögl

This paper introduces a method for pricing insurance policies using market data. The approach is designed for scenarios in which the insurance company seeks to enter a new market, in our case: pet insurance, lacking historical data. The…

应用统计 · 统计学 2026-03-23 Pierre-Olivier Goffard , Pierrick Piette , Gareth W. Peters

This paper addresses the identification of insurance models with multidimensional screening where insurees have private information about their risk and risk aversion. The model includes a random damage and the possibility of several…

数理金融 · 定量金融 2016-01-18 Gaurab Aryal , Isabelle Perrigne , Quang Vuong

We introduce a game-theoretic model to investigate the strategic interaction between a cyber insurance policyholder whose premium depends on her self-reported security level and an insurer with the power to audit the security level upon…

密码学与安全 · 计算机科学 2019-08-15 Sakshyam Panda , Daniel W Woods , Aron Laszka , Andrew Fielder , Emmanouil Panaousis

In this study an exploration of insurance risk transfer is undertaken for the cyber insurance industry in the United States of America, based on the leading industry dataset of cyber events provided by Advisen. We seek to address two core…

We explore credit risk pricing by modeling equity as a call option and debt as the difference between the firm's asset value and a put option, following the structural framework of the Merton model. Our approach proceeds in two stages:…

风险管理 · 定量金融 2025-06-17 Jagdish Gnawali , Abootaleb Shirvani , Svetlozar T. Rachev

A Bonus-Malus System (BMS) in insurance is a premium adjustment mechanism widely used in a posteriori ratemaking process to set the premium for the next contract period based on a policyholder's claim history. The current practice in BMS…

应用统计 · 统计学 2019-03-15 Rosy Oh , Peng Shi , Jae Youn Ahn

The collective risk model differentiates usually between claims frequencies (and their distribution) and claim sizes (and their distribution). For the claims frequencies typically classical discrete distributions are considered, such as…

风险管理 · 定量金融 2023-09-12 Dietmar Pfeifer

Most machine learning techniques are based upon statistical learning theory, often simplified for the sake of computing speed. This paper is focused on the uncertainty aspect of mathematical modeling in machine learning. Regression analysis…

机器学习 · 计算机科学 2022-06-07 Valentin Arkov

Understanding variable dependence, particularly eliciting their statistical properties given a set of covariates, provides the mathematical foundation in practical operations management such as risk analysis and decision-making given…

统计方法学 · 统计学 2023-09-06 Yunyun Wang , Tatsushi Oka , Dan Zhu

Multiple imputation provides an effective way to handle missing data. When several possible models are under consideration for the data, the multiple imputation is typically performed under a single-best model selected from the candidate…

统计方法学 · 统计学 2018-11-30 Gyuhyeong Goh , Jae Kwang Kim

Predictions and forecasts of machine learning models should take the form of probability distributions, aiming to increase the quantity of information communicated to end users. Although applications of probabilistic prediction and…

机器学习 · 统计学 2024-03-19 Hristos Tyralis , Georgia Papacharalampous