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Old 12-02-2018, 11:38 AM
Actuary2017 Actuary2017 is offline
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Hello,

Is there different between Claim frequency and number of claims?

Thanks
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Old 12-02-2018, 12:00 PM
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Frequency is a rate of occurrence.

It is defined by the choice of numerator and denominator.

When looking at a claim frequency, it is common to use claim count as the numerator.
The denominator is normally determined by the purpose of the analysis being performed.
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Old 12-02-2018, 01:02 PM
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Quote:
Originally Posted by Whiskey View Post
Frequency is a rate of occurrence.

It is defined by the choice of numerator and denominator.

When looking at a claim frequency, it is common to use claim count as the numerator.
The denominator is normally determined by the purpose of the analysis being performed.
Thank you so much for your reply Whiskey.

I know that frequency = number of claims/number of exposure.

If I have total claim, claim count, accident year, but I don't have exposure number. How can I find this number

Last edited by Actuary2017; 12-02-2018 at 01:06 PM..
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Old 12-02-2018, 07:42 PM
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Do you have premium? Or number of policies? Those could be exposure bases. Many exposure bases are possible.
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Old 12-02-2018, 08:07 PM
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Originally Posted by Colymbosathon ecplecticos View Post
Do you have premium? Or number of policies? Those could be exposure bases. Many exposure bases are possible.


or if you're really desperate and it's reasonable you just assume that exposure is constant and your frequency is just count over some arbitrary number (e.g. 1)
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Old 12-02-2018, 08:13 PM
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It's common in practice to use EP as a proxy for exposures.
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Old 12-02-2018, 10:10 PM
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Quote:
Originally Posted by Transitive Tangerine View Post
It's common in practice to use EP as a proxy for exposures.
Also:
Quote:
The denominator is normally determined by the purpose of the analysis being performed.
.
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Old 12-03-2018, 10:11 AM
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Quote:
Originally Posted by Actuary2017 View Post
Thank you so much for your reply Whiskey.

I know that frequency = number of claims/number of exposure.

If I have total claim, claim count, accident year, but I don't have exposure number. How can I find this number
Impossible. There is no consistent definition of exposure, and there is certainly no exposure published in annual statements. The best you can do is rely on an exposure proxy like premium. Otherwise look to external factors likely correlated to exposure or frequency.
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Old 12-04-2018, 08:02 AM
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Thank you all for your reply.

I read basic ratemaking manual, and I found that a good exposure base should meet the following criteria: it should be proportional to expected loss, practical, and it should consider any preexisting exposure base established within industry.

Should I follow these criteria or I can check the preexisting base; what I need to estimate the number of claims and claim size.
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Old 12-04-2018, 10:25 AM
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More context is needed to give you a better answer.

[typical actuarial answer]What was used last time?[/taa]
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