A Weighted Regression Model for Ratemaking

Iskander S. Hamwi and Edward Nissan

Journal of Insurance Issues, 1987, vol. 10, issue 2, 78-91

Abstract: This article develops and demonstrates the use of a weighted regression model for ratemaking. This model is superior to the traditional one which is based on the central limit theorem because it holds neither the mean nor the variance of the pure premium distribution constant over time. Comparison of actual premiums versus projected ones shows that the model is capable of producing adequate and fairly reasonable rate forecasts. By using the model the development and revision of rates can be perceived as an objective process.

Date: 1987
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.insuranceissues.org/PDFs/X.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wri:journl:v:10:y:1987:i:2:p:78-91

Access Statistics for this article

Journal of Insurance Issues is currently edited by James Barrese

More articles in Journal of Insurance Issues from Western Risk and Insurance Association
Bibliographic data for series maintained by James Barrese ().