Premium Pricing of Liability Insurance Using Random Sum Model

Mujiati Dwi Kartikasari

Abstract

Premium pricing is one of important activities in insurance. Nonlife insurance premium is calculated from expected value of historical data claims. The historical data claims are collected so that it forms a sum of independent random number which is called random sum. In premium pricing using random sum, claim frequency distribution and claim severity distribution are combined. The combination of these distributions is called compound distribution. By using liability claim insurance data, we analyze premium pricing using random sum model based on compound distribution

Keywords

premium, nonlife insurance, random sum, claim frequency, claim severity, compound distribution

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Eksakta: Journal of Sciences and Data Analysis

E-ISSN 2720-9326 and P-ISSN 2716-0459
Published by: 
Faculty of Mathematics and Natural Sciences
Universitas Islam Indonesia, Yogyakarta

Creative Commons License

Jurnal EKSAKTA is licensed under a Creative Commons Attribution ShareAlike 4.0

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