Bayesian Statistics in Actuarial Science

with Emphasis on Credibility

  • Stuart A. Klugman

Table of contents

  1. Front Matter
    Pages i-xiii
  2. Stuart A. Klugman
    Pages 1-3
  3. Stuart A. Klugman
    Pages 5-16
  4. Stuart A. Klugman
    Pages 17-35
  5. Stuart A. Klugman
    Pages 37-55
  6. Stuart A. Klugman
    Pages 57-64
  7. Stuart A. Klugman
    Pages 65-79
  8. Stuart A. Klugman
    Pages 81-113
  9. Stuart A. Klugman
    Pages 115-149
  10. Back Matter
    Pages 159-237

About this book


The debate between the proponents of "classical" and "Bayesian" statistica} methods continues unabated. It is not the purpose of the text to resolve those issues but rather to demonstrate that within the realm of actuarial science there are a number of problems that are particularly suited for Bayesian analysis. This has been apparent to actuaries for a long time, but the lack of adequate computing power and appropriate algorithms had led to the use of various approximations. The two greatest advantages to the actuary of the Bayesian approach are that the method is independent of the model and that interval estimates are as easy to obtain as point estimates. The former attribute means that once one learns how to analyze one problem, the solution to similar, but more complex, problems will be no more difficult. The second one takes on added significance as the actuary of today is expected to provide evidence concerning the quality of any estimates. While the examples are all actuarial in nature, the methods discussed are applicable to any structured estimation problem. In particular, statisticians will recognize that the basic credibility problem has the same setting as the random effects model from analysis of variance.


actuarial science algorithm bayesian statistics calculus rating statistical analysis statistics

Authors and affiliations

  • Stuart A. Klugman
    • 1
  1. 1.Drake UniversityUSA

Bibliographic information

  • DOI
  • Copyright Information Springer Science+Business Media B.V. 1992
  • Publisher Name Springer, Dordrecht
  • eBook Packages Springer Book Archive
  • Print ISBN 978-90-481-5790-7
  • Online ISBN 978-94-017-0845-6
  • Series Print ISSN 0924-5014
  • Buy this book on publisher's site