Predictive Modeling Applications in Actuarial Science
- Volume 1
- Introduction
- Predictive Modeling Foundations
- Predictive Modeling Methods
- Bayesian and Mixed Modeling
- Longitudinal Modeling
- Volume 2
- Generalized Linear Model
- Extensions of the Generalized Linear Model
- Unsupervised Predictive Modeling Methods
-
Applications on Current Problems in Actuarial Science
- Chapter 8 - The Predictive Distribution of Loss Reserve Estimates over a Finite Time Horizon
- Chapter 9 - Finite Mixture Model and Workers’ Compensation Large-Loss Regression Analysis
- Chapter 10 - A Framework for Managing Claim Escalation Using Predictive Modeling
- Chapter 11 - Predictive Modeling for Usage-Based Auto Insurance
Chapter 2 - Applying Generalized Linear Models to Insurance Data Frequency/Severity versus Pure Premium Modeling
Authors
Dan Tevet | Liberty Mutual Insurance
tevet.dan@gmail.com
Chapter Preview
This chapter is a case study on modeling loss costs for motorcycle collision insurance. It covers two approaches to loss cost modeling: fitting separate models for claim frequency and claim severity and fitting one model for pure premium. Exploratory data analysis, construction of the models, and evaluation and comparisons of the results are all discussed.