Couret and Venter Flashcards Preview

Exam 8 > Couret and Venter > Flashcards

Flashcards in Couret and Venter Deck (11):
1

Mapping type of claims to variable letter

Fatal: V

PT: W

Major: X

Minor: Y

2

Types of letters, Couret and Venter

Capital letters: computed from sample data

Lowercase: estimates of the population means

3

Multi-dimensional credibility

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4

Matrix equation for vi

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5

Expected excess loss formula

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6

3 options to test the results, Couret and Venter

1. Hazard group injury type rations (Vh)

2. Raw sample data injury type ratios (Vi)

3. Injury type ratios resulting from credibility procedures (viest)

7

Initial SSE test, Couret and Venter

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8

Initial SSE test results, Couret and Venter

Credibility procedure best, but not much of an improvement over hazard group ratios

Attributed to the fact that class data by year is volatile, estimators are designed to fit that data

True improvement of credibility procedure masked

9

Quintiles Test procedure

1. Sort injury type relativities in increasing order

2. Group into quintiles so that size roughly equal to the same number of TT claims

3. Calculate weighted average injury type relativity across all classes within each quantile and within the hazard group

4. Use results from step 3 to calculate SSE for each of the 3 methods

10

SSE calculation

Hazard Group Method

Raw Sample Data Method

Credibility Procedure Method

Credibility procedure yields substantial reduction in SSE

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11

Why credibility procedure does not show an improvement for Hazard Group A

Group is already very homogenous, so little value in trying to create subgroups to improve estimation accuracy