Insurance claims have deductibles, which must be considered when pricing for insurance premium. Deductibles may cause censoring and truncation to the frequencies, severities, and peril types of observed insurance claims. In practice, the regression approach is often used with deductible amount included as an explanatory variable inside a frequency-severity model, so that the resulting coefficie...

Recent developments in computer technology have significantly altered the way the insurance business functions. Easy access to large quantities of data has rendered some traditional ratemaking limitations obsolete. The emergence of catastrophe simulation using computer modeling has helped actuaries develop new methods for measuring catastrophe risk and providing for it in insurance rates. This ...

Source of earnings analysis has long been a staple of life insurance policy pricing and profitability monitoring. It has grown in importance with the advent of universal life insurance and of similar contracts with non-guaranteed benefits or charges. SFAS 97 now mandates the use of source of earnings analysis for GAAP reporting of universal life-type contracts. Source of earnings analysis is eq...

In automobile insurance, it is useful to achieve a priori ratemaking by resorting to generalized linear models, and here the Poisson regression model constitutes the most widely accepted basis. However, insurance companies distinguish between claims with or without bodily injuries, or claims with full or partial liability of the insured driver. This paper examines an a priori ratemaking procedu...

Cyber insurance ratemaking (CIRM) is a procedure used to set rates (or prices) for cyber products provided by companies. Rate estimation critical issue products. This problem arises because of the unavailability actuarial data and uncertainty normative standards risk. Most risk analyses do not consider connection between Information Communication Technology (ICT) sources. Recently, model was de...

In classification ratemaking, the multiplicative and additive models derived by actuaries are based on two common methods; minimum bias and maximum likelihood. These models are already considered as established and standard, particularly in automobile and general liability insurance. This paper aims to identify the relationship between both methods by rewriting the equations of both minimum bia...