We study the optimal insurance design problem. This is a risk sharing problem between an insured and an insurer. The … for the insurance cover. This risk-adjusted premium calculation principle uses the cost-of-capital approach as it is … suggested (and used) by the regulator and the insurance industry. …

In insurance rate-making, the use of statistical machine learning techniques such as artificial neural networks (ANN …) is an emerging approach, and many insurance companies have been using them for pricing. However, due to the complexity of … model specification and its implementation, model explainability may be essential to meet insurance pricing transparency for …