Accession Number:

AD0756882

Title:

Premium Calculation in Casualty Insurance.

Descriptive Note:

Research rept.,

Corporate Author:

CALIFORNIA UNIV BERKELEY OPERATIONS RESEARCH CENTER

Personal Author(s):

Report Date:

1973-02-01

Pagination or Media Count:

40.0

Abstract:

The introduction gives some definitions of some of the terms used in risk theory and a short historical note on the idea of the credibility premium. In Part I the concept of a credibility premium is introduced and least squares approximations to the various components are obtained. By stating and proving a generalization of a theorem by Ericson, it is shown that, under certain linearity conditions, exact expressions for the components of the credibility premium can be obtained by a Bayesian analysis. In Part II, some examples are given where these linearity conditions hold and so the approximations are valid in these cases. In Part III, some practical properties of the expected value premium are discussed, using the gamma-Poisson model, and an alternative method of premium calculation using additional information about the insuree is given. Author Modified Abstract

Subject Categories:

  • Economics and Cost Analysis
  • Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE