Abstract
Generalized Linear Models are widely known under their famous acronym GLMs. Today, GLMs are recognized as an industry standard for pricing personal lines and small commercial lines of insurance business. This chapter reviews the GLM methodology with a special emphasis to insurance problems. The statistical framework of GLMs allows the actuary to make explicit assumptions about the nature of insurance data, claim counts or claim costs for instance, and their relationship with the available features. This makes the analysis transparent and relatively easy to communicate, even to non-specialists.
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Notes
- 1.
The full, and official, name of the tables is Actuarial Tables with explanatory notes for use in Personal Injury and Fatal Accident Cases but the unofficial name has now become common parlance, after Sir Michael Ogden having been the chairman of the Working Party for the first four editions.
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Denuit, M., Hainaut, D., Trufin, J. (2019). Generalized Linear Models (GLMs). In: Effective Statistical Learning Methods for Actuaries I. Springer Actuarial(). Springer, Cham. https://doi.org/10.1007/978-3-030-25820-7_4
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DOI: https://doi.org/10.1007/978-3-030-25820-7_4
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