This paper explains the Bayesian version of estimation as a method for calculating credibility premium or credibility number of claims for short-term insurance contracts using two ingredients: past data on the risk itself and collateral data from other sources considered to be relevant. The Poisson/gamma model to estimate the claim frequency for portfolio of policies and Normal/normal model to estimate the pure premium are explained and applied.
Comments: 5 Pages.
[v1] 2012-08-12 10:38:58
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