ParetoCappedMean: Pareto capped mean

In NetSimR: Actuarial Functions for Non-Life Insurance Modelling

Pareto capped mean

Description

Gives the expected claim amount when each claim from a Pareto severity distribution is capped at cap, as needed to price a policy limit or a reinsurance layer.

Usage

ParetoCappedMean(cap, scale, shape)

Arguments

cap	A non-negative real number - the claim severity cap.
scale	A positive real number - the scale parameter of the Claim Severity's Pareto distribution.
shape	A positive real number - the shape parameter of the Claim Severity's Pareto distribution.

Value

The mean of the claim severity capped at cap with a Pareto distribution with parameters scale and shape. A cap at or below scale is returned unchanged, as no claim is smaller than scale. The arguments are recycled to a common length. A non-numeric argument, a negative cap or a non-positive scale or shape is an error; NA values give NA.

See Also

Other capped mean functions: GammaCappedMean(), LNormCappedMean(), ParetoCappedMeanCalc(), SlicedGammaParetoCappedMean(), SlicedLNormParetoCappedMean()

Examples

ParetoCappedMean(600,200,1.2)
ParetoCappedMean(800,100,1)
ParetoCappedMean(1000,500,0.8)
ParetoCappedMean(50,100,2)

NetSimR documentation built on Sept. 30, 2026, 5:13 p.m.