Department of Finance

 

Date of this Version

2001

Document Type

Article

Citation

Journal of Actuarial Practice 9 (2001), pp. 97-130

Comments

Copyright 2001 Absalom Press

Abstract

This paper focuses on issues and methodologies for fitting alternative statistical models-parametric probability distributions-to samples of insurance loss data. The interactions of loss distributions, deductibles, policy limits, and rating variables in the context of fitting distributions to losses are discussed. Fitted loss distributions serve an important function in pricing insurance products. The methodology developed in this paper is applied to a sample of insurance loss data that has the lognormal as the underlying loss distribution.

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