IDEAS home Printed from https://ideas.repec.org/a/rsr/supplm/v60y2012i2p29-43.html
   My bibliography  Save this article

Practical Aspects of Credibility Theory Aiming the Hierarchical Model with Two-Levels

Author

Listed:
  • Virginia ATANASIU

    (The Academy of Economic Studies)

  • Daniela Mihaela VLADU

    ("Dimitrie Cantemir" Christian University, Bucharest)

Abstract

It is an original paper, which shows how the hierarchical model with two levels, can be used to determine the linear non-homogeneous credibility premiums at the sector level and at the contract level. The fact that it is based on complicated mathematics, involving conditional expectations, shouldn’t bother the user more than it does when he applies statistical tools like SAS, GLIM, discriminant analysis, and scoring models. These techniques can be applied by anybody on his own field of endeavor, whether it is economic, medical, insurance, or accounting. We give a rather explicit description of the input data for the used hierarchical model of Jewell, only to show that in practical situations there will always be enough data to apply credibility theory to a real insurance portfolio.

Suggested Citation

  • Virginia ATANASIU & Daniela Mihaela VLADU, 2012. "Practical Aspects of Credibility Theory Aiming the Hierarchical Model with Two-Levels," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 60(2), pages 29-43, May.
  • Handle: RePEc:rsr:supplm:v:60:y:2012:i:2:p:29-43
    as

    Download full text from publisher

    File URL: http://www.revistadestatistica.ro/suplimente/2012/2/srrs2_2012a04.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. De Vylder, F. & Goovaerts, M., 1985. "Semilinear credibility with several approximating functions," Insurance: Mathematics and Economics, Elsevier, vol. 4(3), pages 155-162, July.
    Full references (including those not matched with items on IDEAS)

    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:rsr:supplm:v:60:y:2012:i:2:p:29-43. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adrian Visoiu). General contact details of provider: http://edirc.repec.org/data/stagvro.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.