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This paper proposes a new generalized linear model with the fractional binomial distribution. Zero-inflated Poisson/negative binomial distributions are used for count data with many zeros. To analyze the association of such a count variable…

Methodology · Statistics 2025-08-01 Jeonghwa Lee , Chloe Breece

The prediction of future insurance claims based on observed risk factors, or covariates, help the actuary set insurance premiums. Typically, actuaries use parametric regression models to predict claims based on the covariate information.…

Methodology · Statistics 2026-04-14 Mostafa Shams Esfand Abadi , Kaushik Ghosh

The problem of estimating the ratio of the means of a two-component Poisson mixture model is considered, when each component is subject to zero-inflation, i.e., excess zero counts. The. resulting {\it zero-inflated Poisson mixture (ZIPM)…

Statistics Theory · Mathematics 2022-03-31 Michael D. Perlman

The claim experience of the past is a very important information to calculate the fair price of an insurance contract. In a lot of European countries for instance the prices for motor car insurance depend on the number of claims the driver…

Risk Management · Quantitative Finance 2010-09-22 Magda Schiegl

The negative binomial distribution has been widely used as a more flexible model than the Poisson distribution for count data. However, when the true data-generating process is Poisson, it is often challenging to distinguish it from a…

Statistics Theory · Mathematics 2026-04-07 Yingying Yang , Niloufar Dousti Mousavi , Zhou Yu , Jie Yang

In this paper, non-life insurance claims were modelled under the three parameter discrete generalised Pareto distribution. Data from the National Insurance Commission of Ghana on reported and settled claims were considered for the period…

Methodology · Statistics 2020-04-15 S. K-B. Dzidzornu , R. Minkah

Exponentiated models have been widely used in modeling various types of data such as survival data and insurance claims data. However, the exponentiated composite distribution models have not been explored yet. In this paper, we introduce…

Methodology · Statistics 2022-03-09 Bowen Liu , Malwane M. A. Ananda

Generalized linear models (GLMs) using a regression procedure to fit relationships between predictor and target variables are widely used in automobile insurance data. Here, in the process of ratemaking and in order to compute the premiums…

Applications · Statistics 2016-06-02 J. M. Pérez-Sánchez , E. Gómez-Déniz

In this article, we propose a new three parameter distribution by compounding negative binomial with reciprocal inverse Gaussian model called negative binomial-reciprocal inverse Gaussian distribution. This model is tractable with some…

Methodology · Statistics 2019-06-10 Ishfaq Shah Ahmad , Anwar Hassan , Peer Bilal Ahmad

In this article, a generalized version of Negative binomial-beta exponential distribution with five parameters have been introduced. Some interesting submodels have been derived from it. A comprehensive mathematical treatment of proposed…

Statistics Theory · Mathematics 2019-05-31 Anwar Hassan , Ishfaq Shah Ahmad , Peer Bilal Ahmad

Accuracy and interpretability of a (non-life) insurance pricing model are essential qualities to ensure fair and transparent premiums for policy-holders, that reflect their risk. In recent years, the classification and regression trees…

Machine Learning · Statistics 2023-12-04 Yaojun Zhang , Lanpeng Ji , Georgios Aivaliotis , Charles Taylor

This paper describes a compound Poisson-based random effects structure for modeling zero-inflated data. Data with large proportion of zeros are found in many fields of applied statistics, for example in ecology when trying to model and…

Applications · Statistics 2009-07-29 Marie-Pierre Etienne , Eric Parent , Benoit Hugues , Bernier Jacques

Models such as the zero-inflated and zero-altered Poisson and zero-truncated binomial are well-established in modern regression analysis. We propose a super model that jointly and maximally unifies alteration, inflation, truncation and…

Methodology · Statistics 2022-08-30 Thomas W. Yee , Chenchen Ma

The property and casualty (P&C) insurance industry faces challenges in developing claim predictive models due to the highly right-skewed distribution of positive claims with excess zeros. To address this, actuarial science researchers have…

Machine Learning · Computer Science 2024-06-19 Banghee So

The seemingly disjoint problems of count and mixture modeling are united under the negative binomial (NB) process. A gamma process is employed to model the rate measure of a Poisson process, whose normalization provides a random probability…

Methodology · Statistics 2013-10-15 Mingyuan Zhou , Lawrence Carin

In reinsurance, Poisson and Negative binomial distributions are employed for modeling frequency. However, the incomplete data regarding reported incurred claims above a priority level presents challenges in estimation. This paper focuses on…

Methodology · Statistics 2024-12-16 Nicolas Baradel

Modeling insurance claim amounts and classifying claims into different risk levels are critical yet challenging tasks. Traditional predictive models for insurance claims often overlook the valuable information embedded in claim…

Applications · Statistics 2024-10-08 Yanxi Hou , Xiaolan Xia , Guangyuan Gao

Imputation is a popular technique for handling item nonresponse in survey sampling. Parametric imputation is based on a parametric model for imputation and is less robust against the failure of the imputation model. Nonparametric imputation…

Methodology · Statistics 2019-09-20 Danhyang Lee , Jae Kwang Kim

Tweedie's compound Poisson model is a popular method to model insurance claims with probability mass at zero and nonnegative, highly right-skewed distribution. In particular, it is not uncommon to have extremely unbalanced data with…

Computation · Statistics 2019-11-18 He Zhou , Yi Yang , Wei Qian

A well-designed framework for risk classification and ratemaking in automobile insurance is key to insurers' profitability and risk management, while also ensuring that policyholders are charged a fair premium according to their risk…

Applications · Statistics 2022-10-03 Spark C. Tseung , Ian Weng Chan , Tsz Chai Fung , Andrei L. Badescu , X. Sheldon Lin
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