aim amount and the number of claims. The number of claims is included as a
weight.</p>
<p>The 'burning' specification uses a lognormal GAM for fitting the pure
premium of a claim. The pure premium is obtained by multiplying the estimated
frequency and the estimated severity of claims. The word burning cost is
used here as equivalent of risk premium and pure premium. Note that the
functionality for fitting a GAM for pure premium is still experimental (in
the early stages of development).</p>
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