Researchers from University of California Irvine Publish Research in Machine Learning (Machine Learning in Ratemaking, an Application in Commercial Auto Insurance): Machine Learning

Insurance Daily News

2022 MAY 09 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on artificial intelligence are discussed in a new report. According to news reporting out of the University of California Irvine by NewsRx editors, research stated, “This paper explores the tuning and results of two-part models on rich datasets provided through the Casualty Actuarial Society (CAS).”

Financial supporters for this research include Casualty Actuarial Society Award: NA.

Our news correspondents obtained a quote from the research from University of California Irvine: “These datasets include bodily injury (BI), property damage (PD) and collision (COLL) coverage, each documenting policy characteristics and claims across a four-year period. The datasets are explored, including summaries of all variables, then the methods for modeling are set forth. Models are tuned and the tuning results are displayed, after which we train the final models and seek to explain select predictions. Data were provided by a private insurance carrier to the CAS after anonymizing the dataset. These data are available to actuarial researchers for well-defined research projects that have universal benefit to the insurance industry and the public.”

According to the news reporters, the research concluded: “Our hope is that the methods demonstrated here can be a good foundation for future ratemaking models to be developed and tested more efficiently.”

For more information on this research see: Machine Learning in Ratemaking, an Application in Commercial Auto Insurance. Risks, 2022,10(80):80. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks10040080.

Our news editors report that more information may be obtained by contacting Spencer Matthews, Department of Statistics, Donald Bren School of Information and Computer Science, University of California Irvine, Irvine, CA 92697, USA. Additional authors for this research include Brian Hartman.