Predictive Modeling Applications in Actuarial Science

Chapter 2 - Applying Generalized Linear Models to Insurance Data
Frequency/Severity versus Pure Premium Modeling


Dan Tevet | Liberty Mutual Insurance

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.