Statistical Tools for Modeling Claim Severity Cover Image

Statistical Tools for Modeling Claim Severity
Statistical Tools for Modeling Claim Severity

Author(s): Pavla Jindrová, Ľubica Sipková
Subject(s): Methodology and research technology
Published by: Masarykova univerzita
Keywords: claims severity model; quantile function; lognormal distribution; Pareto distribution;
Summary/Abstract: The main aim of the paper is point out on a new approach to statistical modelling of claims severity by using quantile functions. In addition to explain the theoretical principles and present the application of claims severity models that based function. Claims severity in non-life insurance refers to the monetary loss of an insurance claim and is usually modeled as a non-negative continuous random variable. The conditions under which claims are performed and data are collected allow considering the claims severity to be samples from specific heavy-tailed probability distribution.

  • Page Range: 288-304
  • Page Count: 7
  • Publication Year: 2014
  • Language: English