What is Loss Cost? | Things Actuaries Know
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- Опубликовано: 3 авг 2024
- Another video to teach real actuarial concepts in a (hopefully) simple way!
Today we are discussing:
- Loss cost (aka pure premium)
- Insurance exposures
- Claim frequency
- Claim severity
- Why loss cost is important to insurance pricing
If you have questions, leave them in the comments
If you want more actuarial videos like this, please let me know that in the comments as well
Thank you for watching!
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.
Excellent clarification, thank you!
Happy to help!@@Actuaryelle
This exam 5 playlist is such a breath of fresh air after reading through some of the source text. Thank you for making these videos!
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.
I started studying for exam 5 and this video was pretty useful :) . Thanks
Good luck with exam 5
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!
Youre very kind to say that, thank you! Unfortunately, the thought of having to plan out lessons for an entire semester is a huge deterrent to me 😆
That’s fair! Lol
Doubt it
I wish you do more of these 😅
Because I want to land my first job ASAP and these are really important for interviews 😊
Thank you 💓
Good luck with your job hunt!
@@Actuaryelle aww thenkiu Diii (means elder sister in "Bengali")
Hope to see more videos like these. This was so informative
Glad you enjoyed it! Thanks for watching 🥰
Thanks for your informative videos. Please teach us how to do "Capital Adequacy Assessment"
Really nice that you started with a very simple overview and then made it gradually more nuanced finishing with GLMs
Thanks so much for watching 🥰
@@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
Hello Elle,
Could you please make videos on how to do budgeting for an insurance companies, what happens if we over or under estimated our budget
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!😂
Hahahahahhaaha it isn't even a metric that I have in my database. I couldn't check even if I wanted to 😆😆
Good explanation. Now do triangles. 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!
Do actuaries uses spred sheets when considering who to date?😄
Hope you know that you're great
I appreciate you telling me that. Your comments really light up my world ❤️
Great video! You make the concepts really clear to anyone. :)
Wait a min...
nice easter egg! 😂
Please explain what reserve mean
I have a video all about it! ruclips.net/video/wyYp2R1toW8/видео.html
Hope that helps!