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A Hybrid Fuzzy Regression Model for Optimal Loss Reserving in Insurance

Methodology 2018-06-20 v1

Abstract

In this article, a Hybrid Fuzzy Regression Model with Asymmetric Triangular Fuzzy Coefficients and optimized hh-value in Generalized Linear Models (GLM) framework have been developed. The weighted functions of Fuzzy Numbers rather than the Expected value of Fuzzy Number is used as a defuzzification procedure. We perform the new model on a numerical data (Taylor and Ashe, 1983) to predict incremental payments in loss reserving. We prove that the new Hybrid Model with the optimized hh-value produce better results than the classical GLM according to the Reserve Prediction Error and Reserve Standard Deviation.

Keywords

Cite

@article{arxiv.1806.06853,
  title  = {A Hybrid Fuzzy Regression Model for Optimal Loss Reserving in Insurance},
  author = {Woundjiagué Apollinaire and Mbele Bidima Martin Le Doux and Waweru Mwangi Ronald},
  journal= {arXiv preprint arXiv:1806.06853},
  year   = {2018}
}

Comments

arXiv admin note: substantial text overlap with arXiv:1806.04530