Concordance Probability for Insurance Pricing Models

The concordance probability, also called the C-index, is a popular measure to capture discriminatory ability of predictive model. In this article, definition adapted specific needs frequency and severity model, typically used during technical pricing non-life insurance product. For need two different groups tackled by defining three new types probability. Secondly, these definitions deal with concept exposure, which duration policy or contract. Frequency data have large sample size therefore we present fast accurate estimation procedures for big data. Their good performance illustrated on real-life datasets. Upon examples, estimate probability developed models.