Loss Reserving With Credibility
Credibility has been a foundational concept for actuaries for more than a century. However, it is most often applied to problems of pricing, rather than reserving. This webinar will take a fresh look at the idea of credibility itself, how sample volume, variance and homogeneity come together for a holistic view of a data set's credibility. We will then see how those concepts may be observed in loss triangles to gauge the relative credibility of multiple data sets. Finally, we will consider linear mixed models applied to a traditional chain-ladder method which allows us to integrate complementary data sets for loss triangles with limited data.

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Loss Reserving With Credibility
Credibility has been a foundational concept for actuaries for more than a century. However, it is most often applied to problems of pricing, rather than reserving. This webinar will take a fresh look at the idea of credibility itself, how sample volume, variance and homogeneity come together for a holistic view of a data set's credibility. We will then see how those concepts may be observed in loss triangles to gauge the relative credibility of multiple data sets. Finally, we will consider linear mixed models applied to a traditional chain-ladder method which allows us to integrate complementary data sets for loss triangles with limited data.

Learn more about the speakers

Brian Fannin
Brian Fannin has been an actuary for over 25 years. The data lacks sufficient credibility for him to give a more precise estimate. Brian is an Associate of the CAS, a Certified Specialist in Predictive Analytics (CSPA), and he holds a Masters in Statistics degree. He has worked in a variety of roles in commercial insurance, both primary and excess, here in the US as well as Europe, London, and Asia. He is also the author of the book "R for Actuaries and Data Scientists with Applications for Insurance," published by Actex. He currently works for Akur8 supporting their reserving software.