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A recommendation system for car insurance.

Authors :
Lesage, Laurent
Deaconu, Madalina
Lejay, Antoine
Meira, Jorge Augusto
Nichil, Geoffrey
State, Radu
Source :
European Actuarial Journal; Dec2020, Vol. 10 Issue 2, p377-398, 22p
Publication Year :
2020

Abstract

We construct a recommendation system for car insurance, to allow agents to optimize up-selling performances, by selecting customers who are most likely to subscribe an additional cover. The originality of our recommendation system is to be suited for the insurance context. While traditional recommendation systems, designed for online platforms (e.g. e-commerce, videos), are constructed on huge datasets and aim to suggest the next best offer, insurance products have specific properties which imply that we must adopt a different approach. Our recommendation system combines the XGBoost algorithm and the Apriori algorithm to choose which customer should be recommended and which cover to recommend, respectively. It has been tested in a pilot phase of around 150 recommendations, which shows that the approach outperforms standard results for similar up-selling campaigns. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
21909733
Volume :
10
Issue :
2
Database :
Complementary Index
Journal :
European Actuarial Journal
Publication Type :
Academic Journal
Accession number :
146680423
Full Text :
https://doi.org/10.1007/s13385-020-00236-z