Predicting the cost, and hence the severity, of claims in an insurance company is a real-life problem that needs to be solved in a more accurate and automated way. We will do something similar in this example.

We will start with simple logistic regression and will learn how to improve the performance using some ensemble techniques, such as an random forest regressor. Then we will look at how to boost the performance with a gradient boosted regressor. Finally, we will show how to choose the best model and deploy it for a production-ready environment.