BalanceProperty function

Balance property

Function to assess whether the balance property holds

BalanceProperty(obj)

Arguments

• obj: an object containing the model fit

Returns

a list with the slots call (the original call), BalanceProperty (logical indicating whether the balance property is satisfied) and Alpha (Ratio total observed damage to total predicted damage).

Examples

fit = hierCredGLM(Y ~ area + (1 | VehicleType / VehicleBody), dataCar, weights = w,
 p = 1.75, epsilon = 1e-6)
BalanceProperty(fit)

References

Campo, B.D.C. and Antonio, Katrien (2023). Insurance pricing with hierarchically structured data an illustration with a workers' compensation insurance portfolio. Scandinavian Actuarial Journal, doi: 10.1080/03461238.2022.2161413

Wüthrich, M. V. (2020). Bias regularization in neural network models for general insurance pricing. European actuarial journal 10 (1), 179–202.