Date of Award
Spring 4-24-2023
Document Type
Honors Project
Degree Name
Bachelor of Science
Department
Mathematics
Department Chair or Program Director
Esunge, Julius
First Advisor
Denhere, Melody
Second Advisor
Esunge, Julius
Third Advisor
Hydorn, Debra
Major or Concentration
Mathematics
Abstract
Insurance loss is an unpredicted event that stands at the forefront of the insurance industry. Loss in insurance represents the costs or expenses incurred due to a claim. An insurance claim is a request for the insurance company to pay for damage caused to an individual’s property. Loss can be measured by how much money (the dollar amount) has been paid out by the insurance company to repair the damage or it can be measured by the number of claims (claim count) made to the insurance company. Insured events include property damage due to fire, theft, flood, a car accident, etc. An actuary aims to calculate the probability of an insured event occurring. In this paper we take a set of existing auto insurance data and model it using the Gamma and Weibull distributions. We use method of moments and maximum likelihood estimation to obtain parameter estimates for each distribution. We divide the data into different attributes where we found that the 60+ age group has slightly different shape/scale parameters and there is no real difference between male and female drivers.
Recommended Citation
Kippes, Kayla, "Using a Distributive Approach to Model Insurance Loss" (2023). Student Research Submissions. 532.
https://scholar.umw.edu/student_research/532