Limited Fluctuation Credibility Calculations

Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Introduction to Credibility. 14 min read, ~2,093 words.

Poisson frequency standard:; memorize 1,083 ( ) and 1,537 ( ) at. Severity-only standard:, no "+1". Aggregate standard:; aggregate = frequency + severity. Partial credibility:, capped at 1. Key CV values: exponential = 1, gamma =, Pareto =. Heavier-tailed severity needs larger samples, since a bigger raises the standard.