Concordance probability in a big data setting: application in non-life insurance

-- Th e concordance probability or C - index is a popular measure to capture the discriminatory ability of a regression model. In this article, the definition of this measure is adapted to the specific needs of the frequency and severity model, typically used during the technical pricing of a non - li fe insuran ce product. Due to the typical large sample size of the frequency data in particular, two different adaptations of the estimation procedure of the concordance probability are presented. Note that the latter procedures can be applied to all differ ent versions of the concordance probability . When determining the premium of a non - life insurance product, such as a car insurance product, i ts technical tariff is mostly used as a starting point.