Model insurance claims in aggregate.

Free CAS MAS-I (Modern Actuarial Statistics I) lesson in Statistics. 10 min read, ~1,523 words.

Collective risk model: where is claim count and are iid severities independent of. Compound mean and variance:;. Compound Poisson shortcut: if, then. Sums of independent compound Poissons are again compound Poisson, with severity a mixture weighted by each line's. Panjer recursion gives exactly when is in the class (Poisson, binomial...