October 2014
Intermediate to advanced
584 pages
22h 2m
English
Content preview from Pricing in General Insurance
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399Pricing Considerations for Specic Lines of Business
get rid of the product or replace it before it fails and therefore never use part of the
cover, they may forget about the extended warranty, they may decide not to repair their
product because they’ve lost interest in the product, and by their behaviour, they may
make their item more likely to fail and so on. However, from an underwriting point of
this, this hardly matters, as long as we are able to associate a number of claims with a
number of sales.
23.4.3 Frequency Analysis: From Failure Rate to Expected Claim Count
The expected claim count for a cohort of policies can be simply calcul ...
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