IDEAS home Printed from https://ideas.repec.org/a/wri/journl/v17y1994i2p85-104.html
   My bibliography  Save this article

Estimating Boiler and Machinery Maximum Probable Yearly Aggregate Loss Using a Microcomputer Spreadsheet Simulation

Author

Listed:
  • Ramon H. Venegas
  • Emanuel Melachrinoudis

Abstract

In this study we present a framework and methods to estimate the Boiler and Machinery pure premium distribution and maximum probable yearly aggregate loss amount (MOY) for a hypothetical electric power plant. We use the collective risk theory formulation and combine actual severity data from electric power plants with published object failure rates to generate the pure premium distribution. We obtain our results using a microcomputer spreadsheet simulation and compare them to results obtained using the Pearson approximation method. We conclude that results from reliability studies have direct applications to Boiler and Machinery insurance calculations, and find the spreadsheet simulation method intuitive and practical to implement.

Suggested Citation

  • Ramon H. Venegas & Emanuel Melachrinoudis, 1994. "Estimating Boiler and Machinery Maximum Probable Yearly Aggregate Loss Using a Microcomputer Spreadsheet Simulation," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 17(2), pages 85-104.
    • Handle: RePEc:wri:journl:v:17:y:1994:i:2:p:85-104
    as

    Download full text from publisher

    File URL: http://www.insuranceissues.org/PDFs/X.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:17:y:1994:i:2:p:85-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: James Barrese (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.