Abstract
The Tweedie distribution provides a variance structure that is widely used in GLM for pure premium ratemaking. This essay suggests the quasi-Negative binominal (QNB) as an alternative. Both can be interpreted as collective risk models but the QNB has a variance structure that is more commonly used in other actuarial applications.
Volume
Winter
Year
2022
Description
The Tweedie distribution provides a variance structure that is widely used in GLM for pure premium ratemaking. This essay suggests the quasi-Negative binominal (QNB) as an alternative. Both can be interpreted as collective risk models but the QNB has a variance structure that is more commonly used in other actuarial applications.
Publications
Casualty Actuarial Society E-Forum
Formerly on syllabus
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