Bayesian Skew-Normal Mixed Model

Accurately fits skewed claims

Uses skew-normal distribution to capture skewness and heavy tails in fire insurance losses, improving fit over log-normal models.

Meiling, Gong · Mao, Zhanli · Di, Zhang · Jianxing, Ren · Songtao, Zuo

Fire Technology 2023

Advantages

Better goodness-of-fit than log-normal linear mixed model

Posterior predictive values close to actual claim values