Annual to Daily Claims Frequency

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  • #3253
    Gaurav Shah
    Participant

    Hi, I have a problem at hand.
    I want to convert annual frequency of motor claims into a daily frequency.
    So, let’s say I receive 40 claims from a exposure of 100 cars in a year. How do I convert this into a daily claim count.
    I am assuming a poisson distribution to estimate daily claim count but in all the scenarios that i am trying to generate, all the 40 claims are received in the first half of the year which is not correct.

    Can anyone help me on this?

    #7352
    Sherwin
    Participant

    Isn’t it 0.0011 claims per car day? That’s 40/100/365.

    #7759
    Desire_Young
    Participant

    sorry, I think your choice has some problems.

    annual frequency=0.4 and you may make a straightforward transformation. so the daily frequency lamda=0.4/365.

    and you can calculate it. given any day, the frequency of no claim is exp(-0.4/365).

    and it’s just a binomial distribution, if you want to see some claims at the second half.

    at the upper half year, there is a 182 days and making a simplified assumtion that there is no more one claim at any day.

    it’s a combinatorial calculation. From 182 days, you chose 39 day that reported a claim and there are 143 no claim days.

    the combinatorial part is infinity.

    #9457
    Jhon Martin
    Participant

    How do you generate a daily claim count when you have an annual frequency of motor claims?

    #9999
    Ike Finnell
    Participant

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