Is TabPFN the Silver Bullet for Insurance Pricing?
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arXiv
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| Hauptverfasser: | , , |
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| Format: | Preprint |
| Veröffentlicht: |
2026
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| _version_ | 1866913161082306560 |
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| author | Deprez, Bruno Verbeke, Wouter Verdonck, Tim |
| author_facet | Deprez, Bruno Verbeke, Wouter Verdonck, Tim |
| contents | Modelling claim frequency and severity for non-life insurance pricing predominantly relies on generalised linear models, with gradient-boosted machines as the leading machine learning alternative. Tabular foundation models (TFMs) present a fundamentally different inference paradigm. By pre-training on large collections of synthetic datasets, TFMs enable inference on new data through in-context learning, without any dataset-specific fitting or hyperparameter tuning. This paper presents a first empirical evaluation of TabPFN for motor insurance pricing, benchmarking it against GLM and XGBoost on two publicly available MTPL datasets. Our results show that TabPFN does not consistently outperform established baselines, exhibits substantially longer inference times, and is sensitive to the size of the in-context training set. While tabular foundation models represent a promising direction, particularly in data-scarce settings, their current performance does not offer a viable replacement for established actuarial methods. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2605_22892 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | Is TabPFN the Silver Bullet for Insurance Pricing? Deprez, Bruno Verbeke, Wouter Verdonck, Tim Risk Management Machine Learning Modelling claim frequency and severity for non-life insurance pricing predominantly relies on generalised linear models, with gradient-boosted machines as the leading machine learning alternative. Tabular foundation models (TFMs) present a fundamentally different inference paradigm. By pre-training on large collections of synthetic datasets, TFMs enable inference on new data through in-context learning, without any dataset-specific fitting or hyperparameter tuning. This paper presents a first empirical evaluation of TabPFN for motor insurance pricing, benchmarking it against GLM and XGBoost on two publicly available MTPL datasets. Our results show that TabPFN does not consistently outperform established baselines, exhibits substantially longer inference times, and is sensitive to the size of the in-context training set. While tabular foundation models represent a promising direction, particularly in data-scarce settings, their current performance does not offer a viable replacement for established actuarial methods. |
| title | Is TabPFN the Silver Bullet for Insurance Pricing? |
| topic | Risk Management Machine Learning |
| url | https://arxiv.org/abs/2605.22892 |