Abstract
This paper presents a method for smoothing wind losses when calculating rate indications, but it can apply equally well to other weather events such as hail or freezing. It can be used in other situations such as smoothing out the effects of large losses or other large, but infrequent events. The model is relatively easy to explain to non-actuaries, and it is not difficult to implement. The traditional approach applies a one-sided cap to losses. This paper presents a two-sided model that bounds losses on both the low and high sides.
Volume
LXXXV
Page
89
Year
1998
Categories
Financial and Statistical Methods
Extreme Event Modeling
Natural Peril Modeling
Windstorm Models
Financial and Statistical Methods
Statistical Models and Methods
Decision Methods
Actuarial Applications and Methodologies
Ratemaking
Large Loss and Extreme Event Loading
Financial and Statistical Methods
Extreme Event Modeling
Other Extreme Events
Business Areas
Fire and Allied Lines
Business Areas
Homeowners
Publications
Proceedings of the Casualty Actuarial Society
