KidCA
02-08-2005, 07:55 PM
I work in Reserving, but may need to help select the most important rating variables in a pricing project *gasp*. -forgive me I don't even know what insurance line it is yet...
Say I'm given a small data set of 1,000 losses for the past 10 years and a dump of related information (state, department, gender, etc.). I somehow want to determine if these "factors" are correlated with losses. Then, if so, if they are significant and reliable in predicting future outcomes. **I'll need to weigh which factors are the most important** So correlation and significance will both be important
Assuming these variables meet P&C standards, what do pricing company's do? I don't have fancy tools to use, but I'd like to come up with perhaps some observations--multivariate analysis seems like it may be too complex for any of my systems.
Any suggestions?
Say I'm given a small data set of 1,000 losses for the past 10 years and a dump of related information (state, department, gender, etc.). I somehow want to determine if these "factors" are correlated with losses. Then, if so, if they are significant and reliable in predicting future outcomes. **I'll need to weigh which factors are the most important** So correlation and significance will both be important
Assuming these variables meet P&C standards, what do pricing company's do? I don't have fancy tools to use, but I'd like to come up with perhaps some observations--multivariate analysis seems like it may be too complex for any of my systems.
Any suggestions?