One of the biggest challenges in adopting machine learning models is their lack of interpretability. It is important to be able to understand what models are doing, and this is particularly the case for actuaries who solve problems in a business context. This article discusses the popular SHAP approach as a superior method of calculating feature importance.
Welcome to our round-up of the articles posted on Actuaries Digital during May 2019.
Matthew Rose, Justin Ward and Victor Hai discuss how the structure of perpetual treaties in the traditional life reinsurance model may reduce alignment between the insurer and reinsurer, to the insurer's detriment.
A dynamic approach to managing life reinsurance arrangements. Part II: Treaty design and implementation
Continuing on from Part I, this article discusses how information asymmetry between insurer and reinsurer emerges over the lifetime of a treaty due to capital concerns, increasing access to data, and treaty provisions for repricing, recaptures and errors and omissions.
Posted 21 May 2019
Posted 30 April 2019
Just in This Month
by Andrew Ngai