Generalized linear model (GLM) to determine life insurance premiums

Abstract

Every individual has different mortality rates which affected by the underwriting factor. Underwriting factor is an observable factor. In this paper, we use the Generalized Linear Model (GLM) which can quantify this factor to determine the mortality rate. The parameters of the model will be estimated by the Maximum Likelihood Estimation (MLE) method. The resulted mortality rate is used to determine life insurance premiums.