While both zero-inflation and the unobserved heterogeneity in risks are prevalent issues in modeling insurance claim counts, determination of Bayesian credibility premium of the claim counts with these features are often demanding due to high computational costs associated with a use of MCMC....

In this paper we study the impact of customer stochasticity on firm price discrimination strategies. We develop a new model termed the Bayesian Mixture Scale Heterogeneity (BMSH) model that incorporates both parameter heterogeneity and customer stochasticity using a mixture model approach, and...

It is not uncommon to observe that an insurance policy consists of multiple coverages which cover different perils. In order to capture possible dependence among the claims from multiple coverages and reflect it in a posteriori ratemaking for property and casualty insurance, a shared random...