Claim frequency is not the "percentage of people who've had a claim", it is also not a probability measure (assuming you were referring to the measure-theoretic formalization of a probability distribution), and by extension, not how likely it is for someone to have a claim. Just assume you measure exposure in terms of coverage years, and that you have a single person covered for one year, and this person has two claims. So your claim frequency is 2. This is obviously not a probability by default.
Amazing!! Easily one of or maybe the best video for conceptual actuarial pricing terms with some of the best definitions and explanations. Make more videos going way too deep into ML used for actuaries, various troubles you could face while benchmarking the prices, and decision need to be taken, portfolios for particular products - how the assets meet liabilities in the industrial level. How earning yields are analysed, on graduation, mortality rates and many more as well.
@@Actuaryelle Honestly I wish I had known about your channel prior to starting on actuarial sciences. It's so intuitive (when you explain it) yet the intuition were completely lost at university with all the hyroglyphs in high level theoretical mathematics. So knowing your channel beforehand would have given me sound basic understanding
I apologize I don’t want to make it sound like I’m trying to sell you something. But I just wanted to let you know that you would make an AMAZING Professor at a University. You are really good at engaging people in the content and you explain things really well. I don’t know if that interests you at all, but I just wanted to throw that out there lol!
Hi I had a question, as a non actuary but working in insurance this has been wracking my brain. If I want to calculate say, on a one way basis the average loss cost for only cars. Do you aggregate the incurred amount and divide it by the aggregated exposure (such as vehicle years)? Or do you just average the pure premium (aggregate/sum pure premium and divide by how many risks there are (arithmetic mean). I know it seems silly because it probably is. But damn it it confuses me! Very helpful video though! :)
We sum the numerator (incurred claims) and sum the demoninator (# exposures) and then divide them to get the pure premium (most of the time). Good question!
Definitivamente eres muy atractiva e inteligente, me gustan tus videos con contenido técnico y actuarial. Desafortunadamente me da la sensación que te miras mucho al ombligo y eso es una penita. Suerte
I’ve told everyone I know that actuaries consider red cars to be more risky…EVERYONE…that’s awkward. Thanks for correcting me🤣🤣 To be fair, I work in life and retirement!😂