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Full-Text Articles in Insurance

Alpha Insurance: A Predictive Analytics Case To Analyze Automobile Insurance Fraud Using Sas Enterprise Miner (Tm), Richard Mccarthy, Wendy Ceccucci, Mary Mccarthy, Leila Halawi Apr 2019

Alpha Insurance: A Predictive Analytics Case To Analyze Automobile Insurance Fraud Using Sas Enterprise Miner (Tm), Richard Mccarthy, Wendy Ceccucci, Mary Mccarthy, Leila Halawi

Publications

Automobile Insurance fraud costs the insurance industry billions of dollars annually. This case study addresses claim fraud based on data extracted from Alpha Insurance’s automobile claim database. Students are provided the business problem and data sets. Initially, the students are required to develop their hypotheses and analyze the data. This includes identification of any missing or inaccurate data values and outliers as well as evaluation of the 22 variables. Next students will develop and optimize their predictive models using five techniques: regression, decision tree, neural network, gradient boosting, and ensemble. Then students will determine which model is the best fit …


Improving Vix Futures Forecasts Using Machine Learning Methods, James Hosker, Slobodan Djurdjevic, Hieu Nguyen, Robert Slater Jan 2019

Improving Vix Futures Forecasts Using Machine Learning Methods, James Hosker, Slobodan Djurdjevic, Hieu Nguyen, Robert Slater

SMU Data Science Review

The problem of forecasting market volatility is a difficult task for most fund managers. Volatility forecasts are used for risk management, alpha (risk) trading, and the reduction of trading friction. Improving the forecasts of future market volatility assists fund managers in adding or reducing risk in their portfolios as well as in increasing hedges to protect their portfolios in anticipation of a market sell-off event. Our analysis compares three existing financial models that forecast future market volatility using the Chicago Board Options Exchange Volatility Index (VIX) to six machine/deep learning supervised regression methods. This analysis determines which models provide best …