Credibility and Solvency, [Review of Paper]

Much work has been done in the past few years on the applications of Bayesian credibility to insurance pricing. This work has been born of necessity due to the failure of "classical" credibility theories. Recent work by Buhlman and Straub as well as Morris & Van Slyke incorporate the Bayesian concept of utilizing as much information available from historical data as possible in predicting behavior for a segment of a population.