Generalized linear models and their applications to actuarial modeling : [an honors thesis (HONRS 499)]

Abstract

This paper will discuss the basic principles underlying the theory of generalized linear models and the advantages of using generalized linear models over more traditional methods of actuarial modeling. Generalized linear models offer the flexibility needed to model real world data that does not conform to the strict assumptions underlying these traditional methods. The second part of this paper will illustrate how generalized linear models can be directly applied to current areas of actuarial practice, and the advantages that are to be gained.