Distribution-free inference for LightGBM and GLM with Tweedie loss

Fuente: arXiv
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Auteurs principaux: Manna, Alokesh, Sett, Aditya Vikram, Dey, Dipak K., Gu, Yuwen, Schifano, Elizabeth D., He, Jichao
Format: Preprint
Publié: 2025
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author Manna, Alokesh
Sett, Aditya Vikram
Dey, Dipak K.
Gu, Yuwen
Schifano, Elizabeth D.
He, Jichao
author_facet Manna, Alokesh
Sett, Aditya Vikram
Dey, Dipak K.
Gu, Yuwen
Schifano, Elizabeth D.
He, Jichao
contents Prediction uncertainty quantification is a key research topic in recent years scientific and business problems. In insurance industries (\cite{parodi2023pricing}), assessing the range of possible claim costs for individual drivers improves premium pricing accuracy. It also enables insurers to manage risk more effectively by accounting for uncertainty in accident likelihood and severity. In the presence of covariates, a variety of regression-type models are often used for modeling insurance claims, ranging from relatively simple generalized linear models (GLMs) to regularized GLMs to gradient boosting models (GBMs). Conformal predictive inference has arisen as a popular distribution-free approach for quantifying predictive uncertainty under relatively weak assumptions of exchangeability, and has been well studied under the classic linear regression setting. In this work, we propose new non-conformity measures for GLMs and GBMs with GLM-type loss. Using regularized Tweedie GLM regression and LightGBM with Tweedie loss, we demonstrate conformal prediction performance with these non-conformity measures in insurance claims data. Our simulation results favor the use of locally weighted Pearson residuals for LightGBM over other methods considered, as the resulting intervals maintained the nominal coverage with the smallest average width.
format Preprint
id arxiv_https___arxiv_org_abs_2507_06921
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Distribution-free inference for LightGBM and GLM with Tweedie loss
Manna, Alokesh
Sett, Aditya Vikram
Dey, Dipak K.
Gu, Yuwen
Schifano, Elizabeth D.
He, Jichao
Machine Learning
Application to insurance data, Methodology
Prediction uncertainty quantification is a key research topic in recent years scientific and business problems. In insurance industries (\cite{parodi2023pricing}), assessing the range of possible claim costs for individual drivers improves premium pricing accuracy. It also enables insurers to manage risk more effectively by accounting for uncertainty in accident likelihood and severity. In the presence of covariates, a variety of regression-type models are often used for modeling insurance claims, ranging from relatively simple generalized linear models (GLMs) to regularized GLMs to gradient boosting models (GBMs). Conformal predictive inference has arisen as a popular distribution-free approach for quantifying predictive uncertainty under relatively weak assumptions of exchangeability, and has been well studied under the classic linear regression setting. In this work, we propose new non-conformity measures for GLMs and GBMs with GLM-type loss. Using regularized Tweedie GLM regression and LightGBM with Tweedie loss, we demonstrate conformal prediction performance with these non-conformity measures in insurance claims data. Our simulation results favor the use of locally weighted Pearson residuals for LightGBM over other methods considered, as the resulting intervals maintained the nominal coverage with the smallest average width.
title Distribution-free inference for LightGBM and GLM with Tweedie loss
topic Machine Learning
Application to insurance data, Methodology
url https://arxiv.org/abs/2507.06921