A study on the credibility estimation model for the indurance experience rate-making

보험 경험요율산정을 위한 신뢰도 추정모형 연구

Credibility theory has provided with a useful tool the assignment of weighting factor that reflects the credibility of the observed individual and collective experience to secure fair experience rate-,making. We review credibility models which can effectively estimate risk premiums using credibility theory, and suggest an empirical Bayed model based on the collective statistics to estimate the structural parameters. To illustrate the use of evolutionary models, the models are applied to the actual data, such as loss ratio, claim frequencies and severity, in the Korean automobile insurance. Also the possibilities of generalizations and applications of empirical models are discussed.