Generalized linear model multivariate poisson with artificial marginal (GLM-MPAM): Application of vehicle insurance

At vehicle insurance companies, the determination of the appropriate pure premium will make the business run well. In this study, we were modeling claims frequency data by considering the characteristics of policyholder such as policyholder’s age, marital status, sex, car engine capacity, and age. The data used in this study is a non-motor vehicle and non-truck motor vehicle insurance data, which filed claims during 2013 in a general insurance company. Explaining the significance or value of the research. We are using Generalized Linear Model Multivariate Poisson with Artificial Marginal (GLM-MPAM) to estimate model parameters. The parameter values of this model are estimated using the Maximum Likelihood Estimation method. Furthermore, the estimation result of the parameter can be alternative in the calculation of the pure premium in the next period.