Spatial Risk Smoothing

نویسندگان

  • Andrew Chernih
  • Michael Sherris
چکیده

This paper describes a method for estimating insurance claims or risk premiums allowing for spatial dependence as well as explanatory factors. The concepts are related to those used for graduation of mortality tables using cubic splines but extended to spatial dependence as found in many insurance products. Firstly techniques for measuring spatial dependence are reviewed. Then models with bivariate thin plate splines and penalised least squares objectives are fit to the explanatory factors and the spatial smoothing. Data for property prices by postcode along with explanatory factors is used to illustrate the application of the method to smoothing spatial variation in prices by postcode.

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تاریخ انتشار 2004