An experience based premium rate discounts system in crop insurance using tweedie’s regressions

  1. Jose Luis Vilar Zanón 1
  2. Antonio Heras 1
  1. 1 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

Llibre:
Contributions to risk analysis: risk 2018
  1. Sarabia Alegría, José María (coord.)
  2. Prieto, Faustino (coord.)
  3. Guillén Estany, Montserrat (coord.)

Editorial: Fundación MAPFRE

ISBN: 978-84-9844-683-8

Any de publicació: 2018

Pàgines: 299

Tipus: Capítol de llibre

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Resum

We develop an experience based premium rate discount system in crop insurance able to cope with adverse years when high losses happen within some return period. Technically, it consists of the application of Tweedie’s model and regressions embedded in a mean discount model. We also develop our system using censored regression (Tobit model) and compare results. The proposed rating system should be able to cope with those years that destabilize the technical result caused by chronic premiums insufficiency. We use data taken from the Spanish “table grape” line of business to exemplify the methodology.

Fuente de los datos: Dialnet