Property Insurance Pricing Investigative Research

As the insurance industry embraces predictive analytics, the Gore Mutual Insurance Company (simply "the company" below) is interested in exploring data-driven and computer-intensive methods for risk evaluation and product pricing. Recently, the company ran a 6 month pilot study to investigate the use of a piece of predictive-analytic software called Talon (created by EagleEye Analytics), but in the end decided not to deploy it. By focusing on one or two specific business problems. we will first try to understand why the company found Talon inadequate. Did classical models such as the logit prove insufficient? Would modern ensemble technology such as boosting provide a better solution? Was there a need for better optimization tools? We will then propose and implement a more satisfactory solution.

Faculty Supervisor:

Dr. Mu Zhu

Student:

Zhou Ye

Partner:

Gore Mutual Insurance Company

Discipline:

Statistics / Actuarial sciences

Sector:

Finance, insurance and business

University:

University of Waterloo