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Machine learning improves predictive accuracy in insurance pricing but exacerbates trade-offs between competing fairness criteria across different discrimination measures, challenging regulators and insurers to reconcile profitability with…

风险管理 · 定量金融 2026-01-01 Tim J. Boonen , Xinyue Fan , Zixiao Quan

We study the application of dynamic pricing to insurance. We view this as an online revenue management problem where the insurance company looks to set prices to optimize the long-run revenue from selling a new insurance product. We develop…

计量经济学 · 经济学 2019-07-12 Yuqing Zhang , Neil Walton

Predictive modeling in healthcare continues to be an active actuarial research topic as more insurance companies aim to maximize the potential of Machine Learning approaches to increase their productivity and efficiency. In this paper, the…

机器学习 · 计算机科学 2023-11-27 Ugochukwu Orji , Elochukwu Ukwandu

Usage-based insurance (UBI) uses telematics to align premiums with risk and encourage safe driving. However, deploying these programs is challenging due to heavy-tailed claim costs, nonstationary driver behavior, and limited incentive…

最优化与控制 · 数学 2026-05-11 Qinyang He , Yonatan Mintz

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

When faced with a new customer, many factors contribute to an insurance firm's decision of what offer to make to that customer. In addition to the expected cost of providing the insurance, the firm must consider the other offers likely to…

机器学习 · 计算机科学 2024-08-05 Edward James Young , Alistair Rogers , Elliott Tong , James Jordon

In a context of constant increase in competition and heightened regulatory pressure, accuracy, actuarial precision, as well as transparency and understanding of the tariff, are key issues in non-life insurance. Traditionally used…

应用统计 · 统计学 2025-03-28 Markéta Krùpovà , Nabil Rachdi , Quentin Guibert

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

This paper presents a novel approach to optimizing profit margins in non-life insurance markets through a gradient descent-based method, targeting three key objectives: 1) maximizing profit margins, 2) ensuring conversion rates, and 3)…

机器学习 · 计算机科学 2024-04-17 Vincent Grari , Marcin Detyniecki

In this paper we study the pricing and hedging of nonreplicable contingent claims, such as long-term insurance contracts like variable annuities. Our approach is based on the benchmark-neutral pricing framework of Platen (2024), which…

数理金融 · 定量金融 2025-06-25 Michael Schmutz , Eckhard Platen , Thorsten Schmidt

It has become standard practice in the non-life insurance industry to employ Generalized Linear Models (GLMs) for insurance pricing. However, these GLMs traditionally work only with a priori characteristics of policyholders, while nowadays…

应用统计 · 统计学 2021-01-26 Robert Matthijs Verschuren

Accurately predicting customer churn using large scale time-series data is a common problem facing many business domains. The creation of model features across various time windows for training and testing can be particularly challenging…

机器学习 · 统计学 2018-02-13 Bryan Gregory

This contribution is concerned with price optimisation of the new business for a non-life product. Due to high competition in the insurance market, non-life insurers are interested in increasing their conversion rates on new business based…

计算金融 · 定量金融 2017-11-22 Maissa Tamraz , Yaming Yang

We study robust versions of pricing problems where customers choose products according to a generalized extreme value (GEV) choice model, and the choice parameters are not known exactly but lie in an uncertainty set. We show that, when the…

最优化与控制 · 数学 2021-10-19 Tien Mai , Patrick Jaillet

In continuous-choice settings, consumers decide not only on whether to purchase a product, but also on how much to purchase. Thus, firms optimize a full price schedule rather than a single price point. This paper provides a methodology to…

综合经济学 · 经济学 2024-08-13 Soheil Ghili , Russ Yoon

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

Traditional insurance pricing relies on risk-based principles that ensure actuarial fairness and solvency but do not explicitly account for policyholders' price sensitivity. We formulate insurance pricing as a decision-making problem and…

机器学习 · 统计学 2026-05-29 Sascha Günther , Dimitri Semenovich , Mario V. Wüthrich

In lending, where prices are specific to both customers and products, having a well-functioning personalized pricing policy in place is essential to effective business making. Typically, such a policy must be derived from observational…

机器学习 · 计算机科学 2023-09-08 Christopher Bockel-Rickermann , Sam Verboven , Tim Verdonck , Wouter Verbeke

The property and casualty (P&C) insurance industry faces challenges in developing claim predictive models due to the highly right-skewed distribution of positive claims with excess zeros. To address this, actuarial science researchers have…

机器学习 · 计算机科学 2024-06-19 Banghee So

Customer loyalty is crucial for internet services since retaining users of a service to ensure the staying time of the service is of significance for increasing revenue. It demands the retention of customers to be high enough to meet the…

社会与信息网络 · 计算机科学 2017-10-20 Junhua Chen , Wei Zeng , Ge Fan , Junmin Shao
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