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Old 11-09-2018, 06:58 AM
mattcarp mattcarp is offline
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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
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Old 11-09-2018, 08:37 AM
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JohnLocke JohnLocke is offline
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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?
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Old 11-09-2018, 04:43 PM
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ShundayBloodyShunday ShundayBloodyShunday is offline
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How is frequency calculated? That should help give insight on what to use for the offset.
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