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Tree-based models are appealing for price modeling due to their high performance but they can be unstable. Due to competition between insurers, unstable models increase the risk that the overall premium is too small to cover the losses. The thesis propose various strategies for improving the stability of tree-based models.

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MortenBlorstad/StableTrees

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StableTrees

Installation

The StableTrees package is available on PyPi

pip install stabletrees

Developing

Clone the repository

git clone https://github.com/MortenBlorstad/StableTrees.git

To build the Python-package, first make sure that Eigen is installed and available in the include path include/thirdparty.

cd include\thirdparty
git clone https://gitlab.com/libeigen/eigen.git
cd ../..

Then StableTrees is installable in editable mode by

pip install -e ./python-package

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Tree-based models are appealing for price modeling due to their high performance but they can be unstable. Due to competition between insurers, unstable models increase the risk that the overall premium is too small to cover the losses. The thesis propose various strategies for improving the stability of tree-based models.

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