Question: help me out please An actuarial student is using Empirical Bayes Credibility Theory Model 2 to calculate credibility premiums for a group of insurers. The

help me out please

help me out please An actuarial student is using
An actuarial student is using Empirical Bayes Credibility Theory Model 2 to calculate credibility premiums for a group of insurers. The student has analysed the data for six different insurers, using 10 years of past data for each insurer and has obtained the following figures: 10 SSP 2Py = 1,498 p* = 18.24 1=1/=1 The estimated values of Elm(0)], E[s'(@)] and var[m(@)] based on the data from the six insurers are 4.00, 62.8 and 42.1, respectively. The student has just received the following information relating to a seventh insurer (Insurer I), and he wishes to update the estimates of E[m(0)], Els (0)] and var[m(@)] using the claims data for Insurer I given in the below: Year, j 1 2 3 4 5 6 7 8 9 10 Aggregate claim 100 85 90 102 109 106 128 132 150 131 amount, Risk volume, 22 24 26 20 25 30 29 35 40 36 Pj (i) Calculate the updated estimates for E[m()], E[s (@)] and var[m(@)], and hence calculate the credibility premium for Insurer I for the coming year, given that Insurer I is expected to have a risk volume figure for the coming year of 38. [18] (ii) The student also needs a credibility estimate for Insurer K, one of the six insurers included in the original analysis. He knows that, for Insurer K: 10 Zyx) =986 and PK = 327 Explain whether the credibility premium for Insurer K (based on the full analysis of the seven insurers) will be greater or less than the corresponding figure for Insurer I (per unit of risk volume). [2] [Total 20]

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