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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

Point and interval estimation of future disability inception and recovery rates are predominantly carried out by combining generalized linear models (GLM) with time series forecasting techniques into a two-step method involving parameter…

Applications · Statistics 2014-12-24 Boualem Djehiche , Björn Löfdahl

Accurate forecasting of an insurer's outstanding liabilities is vital for the solvency of insurance companies and the financial stability of the insurance sector. For health and disability insurance, the liabilities are intimately linked…

Statistics Theory · Mathematics 2025-08-12 K. Buchardt , C. Furrer , O. L. Sandqvist

We study shrinkage estimation of the mean parameters of a class of multivariate distributions for which the diagonal entries of the corresponding covariance matrix are certain quadratic functions of the mean parameter. This class of…

Statistics Theory · Mathematics 2022-07-04 Nikolas Siapoutis , Donald Richards , Bharath K. Sriperumbudur

In this paper, we consider statistical estimation of time-inhomogeneous aggregate Markov models. Unaggregated models, which corresponds to Markov chains, are commonly used in multi-state life insurance to model the biometric states of an…

Statistics Theory · Mathematics 2023-08-11 Jamaal Ahmad , Mogens Bladt

The task of modeling claim severities is addressed when data is not consistent with the classical regression assumptions. This framework is common in several lines of business within insurance and reinsurance, where catastrophic losses or…

Statistics Theory · Mathematics 2022-04-01 Martin Bladt , Jorge Yslas

Cross-classified data frequently arise in scientific fields such as education, healthcare, and social sciences. A common modeling strategy is to introduce crossed random effects within a regression framework. However, this approach often…

Methodology · Statistics 2025-07-22 Shota Takeishi , Shonosuke Sugasawa

Count data play a critical role in medical research, such as heart disease. The Poisson regression model is a common technique for evaluating the impact of a set of covariates on the count responses. The mixture of Poisson regression models…

Methodology · Statistics 2023-09-13 Elsayed Ghanem , Moein Yoosefi , Armin Hatefi

Contemporary insurance theory is concentrated on models with different types of polices and shock events may influence the payments on some of them. Jordanova (2018) considered a model where a shock event contributes to the total claim…

Probability · Mathematics 2022-06-28 Pavlina Jordanova , Evelina Veleva , Kosto Mitov

In this paper we introduce a bivariate distribution on $\mathbb{R}_{+} \times \mathbb{N}$ arising from a single underlying Markov jump process. The marginal distributions are phase-type and discrete phase-type distributed, respectively,…

Methodology · Statistics 2022-07-05 Martin Bladt , Clara Brimnes Gardner

We introduce a novel class of bivariate common-shock discrete phase-type (CDPH) distributions to describe dependencies in loss modeling, with an emphasis on those induced by common shocks. By constructing two jointly evolving terminating…

Statistics Theory · Mathematics 2026-01-14 Martin Bladt , Eric C. K. Cheung , Oscar Peralta , Jae-Kyung Woo

The insurance model when the amount of claims depends on the state of the insured person (healthy, ill, or dead) and claims are connected in a Markov chain is investigated. The signed compound Poisson approximation is applied to the…

Probability · Mathematics 2020-01-13 Gabija Liaudanskaitė , Vydas Čekanavičius

In general insurance, risks from different categories are often modeled independently and their sum is regarded as the total risk the insurer takes on in exchange for a premium. The dependence from multiple risks is generally neglected even…

Applications · Statistics 2019-04-10 Sen Hu , T Brendan Murphy , Adrian O'Hagan

The objective is to model longitudinal and survival data jointly taking into account the dependence between the two responses in a real HIV/AIDS dataset using a shared parameter approach inside a Bayesian framework. We propose a linear…

Applications · Statistics 2016-05-02 Rui Martins

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

The paper deals with disorders detection in the multivariate stochastic process. We consider the multidimensional Poisson process or the multivariate renewal process. This class of processes can be used as a description of the distributed…

Optimization and Control · Mathematics 2021-01-12 Krzysztof J. Szajowski

The classic semi-Markov disability model is expanded with individual and collective health claims to improve its explanatory and predictive power -- in particular in the context of group experience rating. The inclusion of collective health…

Risk Management · Quantitative Finance 2026-05-20 Christian Furrer , Philipp C. Hornung

This paper addresses the task of modeling severity losses using segmentation when the data distribution does not fall into the usual regression frameworks. This situation is not uncommon in lines of business such as third-party liability…

Applications · Statistics 2021-11-29 Martin Bladt

We consider continuous time risk processes in which the claim sizes are dependent and non-identically distributed phase-type distributions. The class of distributions we propose is easy to characterize and allows to incorporate the…

Probability · Mathematics 2023-07-28 Oscar Peralta , Matthieu Simon

We consider a large, homogeneous portfolio of life or disability annuity policies. The policies are assumed to be independent conditional on an external stochastic process representing the economic-demographic environment. Using a…

Risk Management · Quantitative Finance 2014-08-27 Boualem Djehiche , Björn Löfdahl
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