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
Unique-IP document downloads: 602 times
Vixra.org is a pre-print repository rather than a journal. Articles hosted may not yet have been verified by peer-review and should be treated as preliminary. In particular, anything that appears to include financial or legal advice or proposed medical treatments should be treated with due caution. Vixra.org will not be responsible for any consequences of actions that result from any form of use of any documents on this website.
Add your own feedback and questions here:
You are equally welcome to be positive or negative about any paper but please be polite. If you are being critical you must mention at least one specific error, otherwise your comment will be deleted as unhelpful.