E
entact
Member
Hi
I'm beginning a fleet technical analysis and, to date, the approach used by the company had much input from best practice techincal analysis. The underwriters have been setting the price for this line of business whereas the actuaries have been restricted to retail business.
I have done some research on recommended approaches and I have a couple of questions which I wasd hoping some users of this forums may have experienced views they can share. Here are some of the initial questions I have:
Credibility Rating: my intention here was to use Buhlmann-Strauss model to derive each risk's credibility weighting (for frequency) and to use a more simplistic approacg for severity. Is B-S the best approach? Does anyone have any recommendations on the approach to use for severity?
Large Claims Loading: I was going to use a simple approach here where I cap claims at the 99% percentile (based on claims frequency) and to model the large claims using a propensity model and use a more simplistic approach model severity. Again, what do people think of these approaches? I should probably have a different capping for each peril? Any other suggestions would be much appreciated.
Good sources for research: Does anyone know of any good sources (that are detailed and reflect best practice) of research for Fleet Rating. I want the source to be Fleet specific. I could only find one article on Google and that was a working party puplication from the 1978 General Insurance Convention
Any feedback would be much appreciated.
I'm beginning a fleet technical analysis and, to date, the approach used by the company had much input from best practice techincal analysis. The underwriters have been setting the price for this line of business whereas the actuaries have been restricted to retail business.
I have done some research on recommended approaches and I have a couple of questions which I wasd hoping some users of this forums may have experienced views they can share. Here are some of the initial questions I have:
Credibility Rating: my intention here was to use Buhlmann-Strauss model to derive each risk's credibility weighting (for frequency) and to use a more simplistic approacg for severity. Is B-S the best approach? Does anyone have any recommendations on the approach to use for severity?
Large Claims Loading: I was going to use a simple approach here where I cap claims at the 99% percentile (based on claims frequency) and to model the large claims using a propensity model and use a more simplistic approach model severity. Again, what do people think of these approaches? I should probably have a different capping for each peril? Any other suggestions would be much appreciated.
Good sources for research: Does anyone know of any good sources (that are detailed and reflect best practice) of research for Fleet Rating. I want the source to be Fleet specific. I could only find one article on Google and that was a working party puplication from the 1978 General Insurance Convention
Any feedback would be much appreciated.