• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Estimating frequency distributions

J

jack123

Active Member
Hi, I'm looking for some clarification on the frequency-severity rating approach in Chapter 14.

The notes state that first the claim frequencies should be grouped by policy year and trended. Then you need to fit a distribution to the frequencies. How do you do this? If you have 5 years of data you will only have 5 data points with which to fit your distribution.
 
Yes, tricky isn't it, and this could easily be an exam question.

I'm a little concerned for you abc1, because of the number of questions you are asking on this forum. It's ok to ask questions of course, but it's important that you develop your own problem-solving skills too.

I recommend that you practise generating ideas, even for questions which, like this, you haven't considered before. After all, 'idea generation' is an important technique in the exam.

Therefore, I'm going to ask you to suggest your own answer to your question. How might you go about this in practice, if you had to do this in your own work?
 
You must log in or register to reply here.
Back
Top