Modeling frequency and severity of claims with the zero-inflated generalized cluster-weighted models

To facilitate applications in general insurance, some extensions are proposed to cluster-weighted models (CWMs). First, we extend CWMs to have generalized cluster-weighted models (GCWMs) by allowing modeling of non-Gaussian distribution of the continuous covariates, as they frequently occur in insurance practice. Secondly, we introduce a zero-inflated extension of GCWM (ZI-GCWM) for modeling insurance claims data with excess zeros coming from …