Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Property - Casualty / General Insurance
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 11-09-2018, 07:58 AM
mattcarp mattcarp is offline
Member
CAS
 
Join Date: Sep 2016
Studying for Exam 6
College: UC Berkeley
Posts: 320
Default Should I offset exposures or premium in Frequency GLM?

I'm working on a frequency GLM and wondering if I should use exposures or premium as the offset in my model. I've run both and getting different results, i.e. certain variables are significant in one but not the other. How can I explain the difference?
__________________
P FM VEE MFE C S OC1 5 OC2 6 7 8 9
Reply With Quote
  #2  
Old 11-09-2018, 09:37 AM
JohnLocke's Avatar
JohnLocke JohnLocke is offline
Member
SOA
 
Join Date: Mar 2007
Posts: 16,318
Default

This is not advice - I am not a P&C actuary. I am just curious.

What is reason to use premium as an offset? If premium is in the offset wouldn't your model already be accouting for all the variables already in the manual rate (which may make sense if you want to determine how much to change the manual) but with an exposure offset none of that is yet accounted for? Does it work differently than that?
__________________
i always post when i'm in a shitty mood. if i didn't do that, i'd so rarely post. --AO Fan

Lucky for you I was raised by people with a good moral center because if that were not the case, you guys would be in a lot of trouble.
So be very, very glad people like me exist. Your future basically depends on it. --jas66kent

The stock market is going to go up significantly due to Trump Economics --jas66kent
Reply With Quote
  #3  
Old 11-09-2018, 05:43 PM
ShundayBloodyShunday's Avatar
ShundayBloodyShunday ShundayBloodyShunday is offline
Member
CAS
 
Join Date: Apr 2013
Posts: 1,741
Default

How is frequency calculated? That should help give insight on what to use for the offset.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 04:53 AM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.23297 seconds with 11 queries