A1179
Title: A zero-inflated mixed-effects spatial point process for grouped storm loss data
Authors: Lisa Gao - University of Waterloo (Canada) [presenting]
Sebastien Jessup - University of Waterloo (Canada)
Abstract: The increasing granularity of third-party weather and exposure information can allow insurers to more effectively predict weather-related losses. However, loss outcomes are often reported in spatially grouped observations, such as at the postal code level, so higher resolution predictors are aggregated to align with the granularity of the outcome in standard analyses. Assuming an underlying zero-inflated mixed-effects spatial point process framework for claims arising from a common storm, we derive a model for unbalanced, zero-inflated multivariate count data that incorporates rich weather and exposure predictors observed at different levels of spatial granularity to predict claim patterns. The model accommodates the dependence between locations affected by a common storm in the excess zeros, as well as in the joint claim counts. Using real property exposure and loss data, the role of spatial dependence and granular predictors is highlighted in predicting localized storm losses.
