Model Monitoring: A General Framework with an Application to Non-life Insurance Pricing
NeutralArtificial Intelligence
- A new framework for model monitoring in non-life insurance pricing has been proposed, addressing the challenges of maintaining predictive performance as insurance portfolios and data-generating mechanisms evolve. This framework distinguishes between virtual and real concept drift, employing statistical methods such as deviance loss and Gini score to assess model calibration and performance.
- The development of this monitoring framework is significant for the insurance industry as it provides a structured approach to adapt pricing models over time, ensuring that they remain accurate and reliable despite changing data conditions. This could lead to improved risk assessment and pricing strategies.
- The introduction of this framework aligns with ongoing discussions in the field of machine learning regarding the importance of model adaptability and calibration. As industries increasingly rely on predictive models, the need for robust monitoring systems becomes critical, particularly in high-stakes areas like finance and insurance, where miscalibrated models can lead to substantial financial losses.
— via World Pulse Now AI Editorial System
