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- All Subjects: Actuarial
- All Subjects: Cystic Fibrosis, Modulator Therapies
- Creators: Milovanovic, Jelena
- Creators: Swoverland, Robert Bo
- Resource Type: Text
The objective of this study is to build a model using R and RStudio that automates ratemaking procedures for Company XYZ’s actuaries in their commercial general liability pricing department. The purpose and importance of this objective is to allow actuaries to work more efficiently and effectively by using this model that outputs the results they otherwise would have had to code and calculate on their own. Instead of spending time working towards these results, the actuaries can analyze the findings, strategize accordingly, and communicate with business partners. The model was built from R code that was later transformed to Shiny, a package within RStudio that allows for the build-up of interactive web applications. The final result is a Shiny app that first takes in multiple datasets from Company XYZ’s data warehouse and displays different views of the data in order for actuaries to make selections on development and trend methods. The app outputs the re-created ratemaking exhibits showing the resulting developed and trended loss and premium as well as the experience-based indicated rate level change based on prior selections. The ratemaking process and Shiny app functionality will be detailed in this report.
For years, patients with Cystic Fibrosis (CF) were able to only treat the symptoms of the disease, but advancements over the last decade have made it possible to partially correct the genetic mutation which causes the disease. Treatment for this disease has long been complex due to the number of organs affected by the mutation, but these new modulator therapies add another level of complexity due to the large yearly cost of $300,000. While approvals for the drugs are reaching more age groups in many countries, ease of access still varies due to the reimbursement deals or prescription coverage available in each country.