Loss distributions for motor insurance claim severity in Kenya
Date
2021
Authors
Nyairo -, Frankline Okindo
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The insurance industry is one of the oldest industries. Insurance companies exist to
provide indemnity and make profits since insurance is a business like any other. The
advancement of the insurance market is compelled by the prevailing interest of the public
for cover against different forms of risks of tmacceptable arbitrary incidents with a
considerable financial effect (Omari et al., 2018). A policyholder is supposed to pay a
premium and make a claim when a certain event occurs witllin a given period as per the
policy. The insurer is tl1en obliged to settle the claim, and this is referred to as loss. Insurers
are keen with the results oftl1e random outcome of claims instead of the existence of the
claims. They are concerned with the loss rather than the circumstances that give rise to the
loss (Achieng, 2010). The aggregate amount of claims in a given dmation is a measure
that is vital to the operations of an insurance company.
Description
Submitted in partial fulfillment of the requirements for the Degree of
Bachelor of Business Science in Actuarial Science at Strathmore University