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When Inflation Causes No Increase in Claim Amounts
Joint Authors
Jones, Bruce L.
Brazauskas, Vytaras
Zitikis, Ricardas
Source
Journal of Probability and Statistics
Issue
Vol. 2009, Issue 2009 (31 Dec. 2009), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2009-07-28
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
It is well known that when (re)insurance coverages involve a deductible, the impact of inflation of loss amounts is distorted, and the changes in claims paid by the (re)insurer cannot be assumed to reflect the rate of inflation.
A particularly interesting phenomenon occurs when losses follow a Pareto distribution.
In this case, the observed loss amounts (those that exceed the deductible) are identically distributed from year to year even in the presence of inflation.
Nevertheless, in this paper we succeed in estimating the inflation rate from the observations.
We develop appropriate statistical inferential methods to quantify the inflation rate and illustrate them using simulated data.
Our solution hinges on the recognition that the distribution of the number of observed losses changes from year to year depending on the inflation rate.
American Psychological Association (APA)
Brazauskas, Vytaras& Jones, Bruce L.& Zitikis, Ricardas. 2009. When Inflation Causes No Increase in Claim Amounts. Journal of Probability and Statistics،Vol. 2009, no. 2009, pp.1-10.
https://search.emarefa.net/detail/BIM-510241
Modern Language Association (MLA)
Brazauskas, Vytaras…[et al.]. When Inflation Causes No Increase in Claim Amounts. Journal of Probability and Statistics No. 2009 (2009), pp.1-10.
https://search.emarefa.net/detail/BIM-510241
American Medical Association (AMA)
Brazauskas, Vytaras& Jones, Bruce L.& Zitikis, Ricardas. When Inflation Causes No Increase in Claim Amounts. Journal of Probability and Statistics. 2009. Vol. 2009, no. 2009, pp.1-10.
https://search.emarefa.net/detail/BIM-510241
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-510241