Talk this afternoon at the seminar of Telecom ParisTech
Insurance is usually defined as “the contribution of the many to the misfortune of the few”. This idea of pooling risks together using the law of large number legitimates the use of the expected value as actuarial “fair” premium. In the context of heterogeneous risks, nevertheless, it is possible to legitimate price segmentation based on observable characteristics. But nowadays, intensive segmentation can be observed, with a much wider range of offered premium, on a given portfolio. In this talk, we will briefly get back on statistical approaches of insurance pricing (classical econometric tools vs machine learning). We will then get back on recent experiments (so-called “actuarial pricing game”) organized since 2015, where real actuaries are playing in competitive (artificial) market, that mimic real insurance market. We will get back on conclusions obtained on two editions, the first one, and the most recent one, where a dynamic version of the game was launched.
By the way, there will be soon a fourth version of the “Actuarial Pricing Game”… some information soon, on this blog…
Cite this blog post
Arthur Charpentier (2018, January 25). Insurance: Risk Pooling and Price Segmentation. Freakonometrics. Retrieved March 1, 2024, from https://doi.org/10.58079/ov9k