2014 Ratemaking and Product Management Seminar
Introduction to Nonparametric Models with Mileage and Time of Day Case Studies
Tuesday, April 1, 2014: 11:15 a.m.
Coolidge (Washington Marriott Wardman Park)
Advances in computing power are opening up more accurate modeling techniques including nonparametric models now commonly used in the statistical community. Nonparametric models eliminate the need to define and impose a rigid model structure required in a traditional GLM resulting in more accurate predictions. This session will provide an introduction to nonparametric modeling and review applications in usage based insurance analytics for both mileage and time of day based rating.