Description: A new health insurance pricing model takes external market prices into account, as well as regulatory rate restrictions and other traditional pricing factors. Rather than being assumed at the outset, lapse rates emerge from the model, along with assessment spiral & loss ratio projections. Under the model optimal pricing strategy depends on whether the class being rated has a healthier than average mix of risks.

Description: Although rate structures where low-cost cohorts subsidize high cost cohorts may be justified from a actuarial, marketing, or legal standpoint, the subsidization creates risks which must be understood and monitored. This article presents the concept of subsidization signature to measure and interpret the effects of rate subsidization, and to assess the sustainability of rating structures and the sensitivity of business mix assumptions.

Description: Up until recent past, the artificial intelligence portion of data science was looked upon cautiously due to its history of booms and flops . In the latest stream of events, major improvements have taken place in this field and now deep learning, the new leading front for Artificial Intelligence, presents a promising prospect for overcoming problems of big data.

Description: This article goes through some basic data exploration techniques to show how different approaches look.

Description: Letter from the editor describing the contents of the issue.

Description: The guest editorial details some valuable lessons during the author’s career as an employee benefits (mostly retirement) consultant, turned P&C predictive modeling, reporting and data warehousing lead, turned an analytic strategist and independent consultant.

Description: A review of the Bridging the Gap Series: Application of Predictive Modeling in VA/FIA Risk Management at the Equity Based Guarantees Conference in Chicago.

Description: A summary of the impact of the "Internet of Things" on the insurance industry.

Description: In order to better develop skill in predictive analytics, the author suggests looking to professionals who design innovative predictive models and, more importantly, find effective ways to communicate their findings to a large audience.