Abstract

In the classical model of experience rating, optimum premiums are obtained by minimizing squared error loss over suitable classes of premiums containing the constants. As a result of this particular choice of the loss function, the expected values of the Bayes and credibility premiums agree with the net premium.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.