Modelling of Claim Counts in Automobile Third-party Liability Insurance

Simeunović, Ivana and Domazet, Ivana and Hanić, Hasan and Bugarčić, Milica (2021) Modelling of Claim Counts in Automobile Third-party Liability Insurance. In: Insights into Economics and Management. BP International, Petrosani, Romania, pp. 81-95. ISBN 978-93-90888-98-6

Text Chapter 8._2021_BP_2196F (1).pdf - Published Version Restricted to Repository staff only Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (760kB) | Request a copy

Abstract

The aim of this paper is the analysis of the problem of modelling of claim counts in insurance that
implies the study of variations of their occurrence through finding out the distribution which fits the
observed data most adequately. As it is well known, in practice many cases of discontinuous variables
can be modeled utilizing the Poisson distribution. However, examples of discontinuous random
variables that do not adapt to this theoretical range model can often be found. One of these is the
frequency of adverse events in motor third party liability insurance when some of the derived Poisson
distributions may be more adequate, for example Poisson-Gamma (negative binomial) distribution,
Poisson-Inverse Gaussian distribution, Poisson-LogNormal distribution, etc. Among the models that
have been derived from the elements of Poisson processes, in this paper the model known as Good
risk/bad risk (good driver/ ad driver) model is analyzed for the modeling of claim counts in automobile
third-party liability insurance. In that sense, the most important aspects in the process of choosing the
probability of claim numbers have been studied on a chosen sample from a Serbian insurance
company and it has been found that appropriate sample analysis that was based upon the study of
the previous experience of the insured was one of the key elements from the point of view of
determining adequate premium systems.

Item Type:	Book Section
Additional Information:	COBISS.ID=40149257
Uncontrolled Keywords:	claim frequency, probability distribution functions, determining premium, poisson-gamma distribution
Research Department:	Digital Economics
Depositing User:	Jelena Banovic
Date Deposited:	09 Jun 2021 08:02
Last Modified:	09 Jun 2021 08:02
URI:	http://35.240.28.64/id/eprint/1605
Author Links:	[error in script] No links available.

Actions (login required)

View Item