Document Type : Original Research Paper

Authors

Department of Insurance Statistics, Shahid Beheshti University, Tehran, Iran

Abstract

Reliability theory is a statistical tool for calculating the insurance premium for the next period based on the insured's past experiences. Each contract is characterized by a risk parameter. In this article, we consider a risk parameter for each insured, and by using infinite mixed distributions, a model for calculating the reliability and Bayesian premium, based on the frequency and severity of damages, is examined together. The distribution of the total severity of damages based on frequency will be an infinite mixed distribution. Finally, by considering the prior gamma distribution for the risk parameter, the Bayesian and reliability premium is calculated.

Keywords

Letters to Editor


IJIR Journal welcomes letters to the editor for the post-publication discussions and corrections which allows debate post publication on its site, through the Letters to Editor. Letters pertaining to manuscript published in IJIR should be sent to the editorial office of IJIR within three months of either online publication or before printed publication, except for critiques of original research. Following points are to be considering before sending the letters (comments) to the editor.

[1] Letters that include statements of statistics, facts, research, or theories should include appropriate references, although more than three are discouraged.

[2] Letters that are personal attacks on an author rather than thoughtful criticism of the author’s ideas will not be considered for publication.

[3] Letters can be no more than 300 words in length.

[4] Letter writers should include a statement at the beginning of the letter stating that it is being submitted either for publication or not.

[5] Anonymous letters will not be considered.

[6] Letter writers must include their city and state of residence or work.

[7] Letters will be edited for clarity and length.
CAPTCHA Image