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 Workersâ€™ Compensation LargeLoss Regression Analysis
 Chapter 10  A Framework for Managing Claim Escalation Using Predictive Modeling
 Chapter 11  Predictive Modeling for UsageBased 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.