[Article] A machine learning model for lapse prediction in life insurance contracts

Article from Cost Action members, with acknowledgement to the Action Michele Azzone, Emilio Barucci, Giancarlo Giuffra Moncayo, Daniele Marazzina Abstract: We use the Random Forest methodology to predict the lapse decision of life insurance contracts by policyholders. The methodology outperforms the logistic model, even if features interactions are considered. We use global and local interpretability tools to investigate how the model works. We show that non-economic features (the time passed from the incipit of… Read More

[Article] Financial literacy and psychological disaster preparedness: applicability of approach based on fuzzy functional dependencies

Article from Cost Action members, with acknowledgement to the Action Miljan Vučetić, Zuzana Brokešová, Miroslav Hudec, Erika Pastoráková Abstract: Recent catastrophes and crises emphasize the necessity of an individual’s and household’s preparedness for coping with these events. Previous research focuses mainly on short-term preparation and immediate response to catastrophes. The ex ante approach to managing long-term effects can rarely be found in literature, especially with an emphasis on financial preparedness. In this… Read More