Methods for Fitting Distributions to Insurance Loss Data

The methods described in this paper can be used to fit five types of distribution to loss data: gamma, log-gamma, log-normal, gamma + log-gamma, and gamma + log-normal. The paper also discusses applications of the fitted distributions to estimation problems; e.g., computing the effects of inflation on the loss portion of deductible credits and increased limits charges, and determining changes to claim frequencies and severities brought about by changes in deductibles and limits. A computer program carries out all the calculations.