On a Strategy to Develop Robust and Simple Tariffs from Motor Vehicle Insurance Data

Abstract

The goals of this paper are twofold: we describe common features in data sets from motor vehicle insurance companies and we investigate a general strategy which exploits the knowledge of such features. The results of the strategy are a basis to develop insurance tariffs. The strategy is applied to a data set from motor vehicle insurance companies. We use a nonparametric approach based on a combination of kernel logistic regression and e-support vector regression.