In this article we will obtain, just like in the case of classical credibility model, a credibility solution in the form of a linear combination of the individual estimate (based on the data of a particular state) and the collective estimate (based on aggregate USA data). Mathematics Subject...

In this article we give the mathematical theory of some credibility models. The first section describes the original credibility model of Bühlmann and we derive the best linearized credibility estimator for this model. His original model, involving only one contract, contains the basics of all...