Calculation of Provisions Using Credibility Theory

Tile increasing difficulties facing tile insurer when he measures certain risks and fundamentally when that measurement has to be carried out "a priori" are not easily overcome. Thus, tile greater part of the insurance companies still use in numerous branches subjective methods of assessing a risk, which unfortunately do not lead to the best results. Especially in certain risks with undefined characteristics, tile problem becomes more accentuated to the point of being practically impossible to class risks whose behavior would be homogeneous.