Honors Program Theses
Award/Availability
Open Access Honors Program Thesis
Keywords
Insurance--Rates; Risk assessment--Mathematical models;
Abstract
Actuaries in insurance companies strive to put a price tag on future risk. They use a variety of analyses and models to accurately price insurance products. Models discussed in this paper include the pure premium method, the loss ratio method, the minimum bias procedure, and generalized linear models. Each of these pricing mechanisms are used to determine accurate and actuarially sound rates for insurance products. Competition in the industry forces companies to find more refined ways to predict the future costs of a risk. Classification systems allow companies to include a variety of rating variables so that each risk is priced based on its individual characteristics. This paper explains the basics of ratemaking as well as describes each of the models mentioned. It will also look at the advantages and disadvantages of each model and determine when one model is preferable to others.
Year of Submission
2008
Department
Department of Mathematics
University Honors Designation
A thesis submitted in partial fulfillment of the requirements for the designation University Honors
Date Original
5-2008
Object Description
1 PDF file (52 pages)
Copyright
©2008 Erin Conrad
Language
en
File Format
application/pdf
Recommended Citation
Conrad, Erin, "Risk Classification and Ratemaking in Insurance" (2008). Honors Program Theses. 743.
https://scholarworks.uni.edu/hpt/743
Comments
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