Physical Sciences and Mathematics Commons^™

Fitting Skew Distributions To Iranian Auto Insurance Claim Data, Ramin Kazemi, Abdollah Jalilian, Akram Kohansal

Applications and Applied Mathematics: An International Journal (AAM)

In actuary, the derivation of loss distributions from insurance data is of great interest. Fitting an adequate distribution to real insurance data is not an easy task, mainly due to the nature of the data, which shows several features to be accounted for. Although, because of its stochastic and numerical simplicity, it is often assumed that the involved financial risk factors are normally distributed, but empirical studies indicate that most of financial risk factors have distributions with high peaks and heavy tails. Thus, it is important in the actuarial science to model insurance risks with skewed distributions. Claims size data …