Can you clarify what the markets and the participation rates are?

Insurance pricing game
4

Hi @simon_coulombe

Firstly, I have just posted an announcement that may be of interest.

Secondly I will address you questions below:

  1. How many policies in each market. Every market has exactly the same N policies that you compete for. The only thing that changes from one market to another, are the other 9 competitors that you are playing against.
  2. The 5% participation rule. As @guillaume_bs states, this rule requires that you get at least 1 policy in 5% or more of the many many markets that you are placed in. In otherwords, you must have nonzero marketshare in at least 5% of markets.
  3. Baseline scripts. I hope (2) has alleviated those worries, but if not, rest assured that the mean model baseline does not satisfy the non-zero non-negative profit rule, so they would already be disqualified from the markets without ever entering the equation. However, some may have tweaked this to make it work, in which case, well, that is their model.
  4. Predict_premium = predict_expected_claim, what then? Yes some people might do this, but with market randomisation their effect will be mitigated. With time, and especially after this weeks’ leaderboard, more and more players will also realise that this may not always be profitable market strategy for everyone (market conditions notwithstanding).
  5. Feedback about market performance. Yes, this will likely be present from next week, see my comments here.

And… congrats on the first leaderboard! :muscle:

1 Like