Loss severity of claims amounts in motor insurance. A case study of State Insurance Company
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Date
2016
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Abstract
General Insurance companies in Ghana are confronted with problems when they
want to use past or present claims amounts in forecasting future claim severity.
This study seeks to determine an appropriate statistical distribution for the claims
amounts of SIC, to determine the posterior distribution of the claims amounts of
SIC, and to estimate the expected future claims amounts of SIC using Bayesian
methodology. Secondary data from motor policy was obtained from State Insurance
Company (SIC) over a period of one year (from January 2015 to December
2015) was used. Claims data that were above GHS 4,000 were considered by
the researcher. The analysis of the data was done using Excel, Statistical Package
for Social Science (SPSS) and EasyFit software. The research work revealed
that the claims data and the posterior distribution of the claim amount followed
log-normal distribution and the expected future claim amount is GHS 21,525.27.
Description
A thesis submitted to The Department of Mathematics, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the award of Msc. Actuarial Science,