### Role of Generalised Linear Model in non-life pricing Phase3

Phase1: http://www.actuarysense.com/2018/10/role-of-generalised-linear-model-in-non.html
Phase2: http://www.actuarysense.com/2018/11/role-of-generalised-linear-model-in-non.html So we know that the purpose of GLM is to find the relationship between mean of the response variable and covariates.

Linear Predictor: Let’s denote it with, “η” (eta). So, linear predictor is actually a function of covariates. For example, in the normal linear model where function is Y = B0 + B1x. So linear predictor will be η = B0 + B1x. Always note that linear predictor has to be linear in its parameter. In this case parameters are B0 and B1. But still the question is how I came up with B0 + B1x as a function? First of all, note that broadly there are two types of Covariates. 1. Variables: It takes the numerical value. For example: age of policyholder, years of ex…

### LIFE INSURANCE:

#### First Life insurance company :

The Oriental Life Insurance company established in 1818. This was a British Company. The first Indian Insurance company was Bombay Mutual Life Assurance Society established in 1871.

#### When Does it Nationalize:

Nationalized on January 19, 1956. There were 154 domestic insurers,16 foreign insurers and 75 Provident funds that were taken by central government ; all the 245 insurers and provident funds result into a company named as Life Insurance Corporation of India(LIC) with a capital of Rs.5 crore by Government of India.

### GENERAL INSURANCE:

#### First Non life Insurance Company:

Triton Insurance Company ltd. was formed in 1850 in Kolkata by British. The first Indian general insurer was Indian  Merchantile Insurance Company formed in 1907.

#### When Does it Nationalize:

Nationalized on November 22, 1972. All the 107 Indian and Foreign insurers operating were nationalized and grouped into 4 companies and operated as Subsidiaries of General Insurance Corporation of India(GIC). Those 4 subsidiaries were :
1. The National Insurance Co. Ltd.
2. Oriental Insurance Co. Ltd.
3. United India Insurance Co. Ltd.
4. New India Assurance Co. Ltd.

 Life Insurance Players Non-Life Insurance Players SBI life Insurance Co. Ltd. ICICI Lombard General Insurance Co. Ltd. Met Life India Insurance Company ltd. TATA AIG General Insurance Co. Ltd. HDFC standard life Insurance company Ltd HDFC ERGO General Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. L&T General Insurance Insurance Co. Ltd. Reliance Life Insurance Co. Ltd. Reliance General Insurance Co. Ltd. Bharti AXA life insurance Co. Ltd. Shriram General Insurance Co. Ltd. And so on…………………………………………. And so on………………………………………………….