Statistical Inference And Application Of Credibility Model

Hypothetical risk(losses which insurance contract may result in)is recognized by unknown risk parameters ?,and All possible values of ? is portrayed by random variable(?).A basic methods of reliability theory is to determine insurance premiums of the con-tract using sample data and prior distribution simultaneously.In the application of non-life insurance rates making,reliability model has been an effective tool to determine rate fac-tor.By reliability model,actuary could adjust future premiums according to experience of single or a group of risk.This paper firstly introduces the development of reliability theory,the earliest finite perturbation theory,Bayesian premium theory,and four reliabil-ity models:Buhlmann reliability model,Buhlmann-Straub reliability model,Hierarchical reliability model and Hierarchical reliability regression model.Then credibility premi-um and estimated expressions of structural parameters are given for above four reliability models.Finally,a empirical analysis is concluded by statistical analysis tool R software and combined with the Hierarchical data sets.