Possibilistic Modeling for Loss Distribution and Premium Calculation
نویسندگان
چکیده
ABSTRICT This paper uses the possibility distribution approach to estimate the insurance loss amount. A special class of parametric possibility distributions is used to model insurance loss variables. The parameters of the possibility distribution are estimated by combining statistical analysis of sample data and domain knowledge provided by actuarial experts. Insurance premiums are calculated using possibilistic mean and possibilistic variation. Estimation of possibility distribution of aggregate loss amount is also discussed.
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