Micro-insurance Pricing With XGBoost Model Containing Tweedie GLM
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Date
2022Author
Mweberi, Pauline M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Microinsurance is a necessary tool that can be widely used to contribute to alleviating
poverty. The low income earners’ hard earned wealth or businesses can be protected from
the insurable risks. The insurers could consider modelling these products to increase insurance
penetration hence increasing the country’s GDP.
This paper, I have compared three pricing methods using the same data to draw a conclusion
using RMSE as a metric. The results of the project have shown that RMSE of the last
model, XGBoost with Tweedie GLM. This approach was taken because of the availability
of microinsurance data and the one that is available is heavily zero rated.
Tweedie is the most suited generalized linear model since it is a mixture of Poisson-
Gamma distribution. The results are so because of benefits such as regularization; parallel
processing;handling missing values ;cross validation and effective pruning. All these have
been shown in the main project
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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