Practical Aspects of Credibility Theory Aiming the Hierarchical Model with Two-Levels
Journal Title: Revista Romana de Statistica - Year 2012, Vol 60, Issue 2
Abstract
It is an original paper, which shows how the hierarchical model with two levels, can be used to determine the linear non-homogeneous credibility premiums at the sector level and at the contract level. The fact that it is based on complicated mathematics, involving conditional expectations, shouldn’t bother the user more than it does when he applies statistical tools like SAS, GLIM, discriminant analysis, and scoring models. These techniques can be applied by anybody on his own field of endeavor, whether it is economic, medical, insurance, or accounting. We give a rather explicit description of the input data for the used hierarchical model of Jewell, only to show that in practical situations there will always be enough data to apply credibility theory to a real insurance portfolio.
Authors and Affiliations
Virginia ATANASIU, Daniela Mihaela VLADU
Keywords
Related Articles
- EP ID EP98209
- DOI -
- Views 126
- Downloads 0
Contents and Particularities of the Labor Market
There is a tight correlation between the economic development of a country and the labor, as production factor. The labor is traded on a specific market, and the lack of labor force is perceived as an obstacle in the pat...
An Assessment of Three Northeast Asian Economies’ Total Factor Productivity
East Asian economies have achieved spectacular growth rates in a relatively short timespan outstripping the rest of the developing world. Hence the concern of both scholarly and policymaking circles for their peculiar de...
Creating statistical reports in the past, present and future
The paper summarizes the most important milestones in the recent history of computer-aided data analysis, then suggests an alternative reporting workflow to the traditional statistical software methods by the means of an...
Conflicts Management in Constructions Projects
Conflicts are inevitable within organisations and construction projects are not excepted. The large number of persons involved and the interdependent relations sometimes inevitably result in conflicts. There are very dif...
Guaranteeing Energy Supplies
Pipelines that carry much of the world’s oil and gas snake through the depths of the Black Sea, the frigid waters of the Russian Arctic and cross some of the world’s most dangerous conflict zones. The value of these pipe...