Study Findings on Risk Management Are Outlined in Reports from Towson University (Modeling Data with Nonlinear LogNormal-Pareto Regression via the Approximate Bayesian Computation): Insurance – Risk Management

2026 AUG 11 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on risk management are discussed in a new report. According to news originating from Towson, Maryland, by NewsRx correspondents, research stated, “The development of regression models for composite distributions has received insufficient attention in the literature.”

The news correspondents obtained a quote from the research from Towson University: “The purpose of this research is to provide maximum likelihood (ML) and approximate Bayesian computation (ABC) estimators for the parameters of a regression model with a response variable following the LogNormal-Pareto composite distribution. Composite models such as Exponential-Pareto, LogNormal-Pareto, and Inverse-Gamma-Pareto, which separate small-to-moderate and significant losses using a threshold parameter, have been developed using classical and Bayesian methods and applied to insurance data. We derive closed-form formulas for MLEs in regression models with two and three covariates. For models with more than three covariates, we provide MLEs using Mathematica code. Simulation studies show that the ABC method is more accurate than the ML method.”

According to the news reporters, the research concluded: “Mathematica code written specifically for the computations of the proposed methods is provided.”

For more information on this research see: Modeling Data with Nonlinear LogNormal-Pareto Regression via the Approximate Bayesian Computation. Risks, 2026,14(7):165. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks14070165.

Our news editors report that more information may be obtained by contacting Mostafa S. Aminzadeh, Department of Mathematics, Towson University, Towson, MD 21252, United States.

(Our reports deliver fact-based news of research and discoveries from around the world.)