... – The generating process of the historical loss cost ratio's (LCR's) are reviewed, and the Erlang mixture distribution is proposed. A modified credibility approach is developed based on the Erlang mixture distribution and the liability weighted LCR, and information from the observed data of the individual region...

... of the reinsurance treaty. The reinsurance model is calibrated to unique data sets, including private reinsurance experience for Manitoba, and loss cost ratio (LCR) experience for all of Canada, under the assumption of the standard deviation premium principle and conditional tail expectation risk measure...