Boosting Poisson regression models with telematics car driving data


Date

2021

Publication Type

Journal Article

ETH Bibliography

yes

Citations

Altmetric

Data

Abstract

With the emergence of telematics car driving data, insurance companies have started to boost classical actuarial regression models for claim frequency prediction with telematics car driving information. In this paper, we propose two data-driven neural network approaches that process telematics car driving data to complement classical actuarial pricing with a driving behavior risk factor from telematics data. Our neural networks simultaneously accommodate feature engineering and regression modeling which allows us to integrate telematics car driving data in a one-step approach into the claim frequency regression models. We conclude from our numerical analysis that both classical actuarial risk factors and telematics car driving data are necessary to receive the best predictive models. This emphasizes that these two sources of information interact and complement each other.

Publication status

published

Editor

Book title

Volume

111 (1)

Pages / Article No.

243 - 272

Publisher

Springer

Event

Edition / version

Methods

Software

Geographic location

Date collected

Date created

Subject

Densely connected feed-forward neural network; Convolutional neural network; Combined actuarial neural network; Claims frequency modeling; Telematics car driving data; Poisson regression; Generalized linear model; Regression tree; Telematics heatmap

Organisational unit

08813 - Wüthrich, Mario Valentin (Tit.-Prof.) check_circle
02204 - RiskLab / RiskLab check_circle

Notes

Funding

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