Advanced SearchSearch Tips
An Estimation of Loss Ratio Based on Empirical Bayes Credibility
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
An Estimation of Loss Ratio Based on Empirical Bayes Credibility
Lee, Kang Sup; Lee, Hee Chun;
  PDF(new window)
It has been pointed out that the classical credibility model used in Korea since the beginning of 1990's lacks in objectiveness. Recently, in order to improve objectiveness, the empirical Bayes credibility model utilizing general exposure units like the number of claims and premium has been employed, but that model itself is not quite applicable in the country like Korea whose annual and classified empirical data are not well accumulated and even varied severely. In this article, we propose a new and better model, Based on the new model, we estimate both credibility and loss ratio of each class for fire insurance plans by Korean insurance companies. As a conclusion, we empirically make sure analysis that the number of claims is a more reasonable exposure unit than premium.
empirical Bayes credibility;loss ratio;portfolio;rate;premium;exposure unit;
 Cited by
보험개발연구, 2001. vol.12. 1, pp.59-89

보험개발연구, 1997. vol.8. 2, pp.109-125

보험개발연구, 1994. vol.5. 1, pp.136-151

Credibility for Loss Ratios, 1972.

Introduction to Credibility Tehory, 1999.

Development and Testing of Empirical Bayes Credibility Procedures for Classification Ratemaking, 1980.