Dependence Between Report Lag and Claim Amounts in Property and Casualty Insurance

Authors

N. Ahmed, Insurance and Actuarial Science Department, Faculty of Commerce, Cairo University, Giza, EgyptFollow
L. Farid, Insurance and Actuarial Science Department, Faculty of Commerce, Cairo University, Giza, EgyptFollow

Author Country (or Countries)

Egypt

Abstract

An essential tool for comprehending the variable of interest is possessing a variable that can interpret the behavior of another. The concept of dependency has been intensively researched throughout the years, with numerous models. Copulas are a comprehensive tool for simulating the interdependence of the variables. They provide alternative interpretations of the linear and non-linear relationship between associated random variables and their marginal. In Insurance sector, one of the most risks that the insurers face is holding inefficient provision amounts for claims. This paper explains the dependence structure between the claim amount and the report lag period for claims in the insurance companies.

Digital Object Identifier (DOI)

http://dx.doi.org/10.18576/jsap/120317

Recommended Citation

Ahmed, N. and Farid, L. (2023) "Dependence Between Report Lag and Claim Amounts in Property and Casualty Insurance," Journal of Statistics Applications & Probability: Vol. 12: Iss. 3, Article 17.
DOI: http://dx.doi.org/10.18576/jsap/120317
Available at: https://digitalcommons.aaru.edu.jo/jsap/vol12/iss3/17