Annual to Daily Claims Frequency

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  • #3253
    Gaurav Shah

    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?


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


    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.

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