Theory and Application of the Bivariate Credibility Model

In recent times, the insurance activity had shown an implausible increase which had an expressively valuable effect on the economic growth of several countries globally. Services that influence growth in the country include the deployment of a colossal sum of funds by means of premiums for short- and long-term investment for development and underwriting of risk in economic entities. We propose in this paper new credibility premiums, which is based on a relationship between the number and the number of claims of a contract for that year, under the irreducible random variables, which helps us ensure the covariance matrix inversion. And then we calculate bivariate Bühlmann and Bühlmann Straub estimators with application. Thus, we arrive at the new estimators of the individual premium by using additional sources of data. We conclude with structure parameters estimators and application.