Credibility Theory and Its Using In Insurance Practice



Year of publication 2013
Type Article in Proceedings
Conference European Financial Systems 2013. Proceedings of the10th International Scientific Conference
MU Faculty or unit

Faculty of Economics and Administration

Field Applied statistics, operation research
Keywords Bühlmamann model; premium; theory of credibility
Description The subject of this paper is to introduce the theory of credibility. First, risk factor for policyholders is defined. Then sorts of premium are described and the credibility premium is introduced as a linear function of the past data. The simplest credibility model, the Bühlmann model, is shown. It is tryed to use for the determination of the amount of premium. The model example is solved with the use of mathematical and statistical methods.

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