scholarly journals A Comparison Study for the Pricing of Automobile Insurance Premium Based on Credibility

2010 ◽  
Vol 17 (5) ◽  
pp. 713-724 ◽  
Author(s):  
Yeong-Hwa Kim ◽  
Hyun-Soo Lee
Keyword(s):  
Insurance Premium ◽  
Automobile Insurance ◽  
Comparison Study

An Evaluation of the New Japanese Bonus–Malus System with No-claim and Claimed Subclasses

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Mahito Okura ◽  
Takuya Yoshizawa ◽  
Motohiro Sakaki
Keyword(s):  
Simulation Analysis ◽  
Insurance Premium ◽  
Automobile Insurance ◽  
Insurance Claims ◽  
Present Value ◽  
Time Discount

AbstractThe purpose of this research is to evaluate the new Japanese Bonus–Malus System (BMS 2012) in automobile insurance, which is an unusual system wherein both no-claim and claimed subclasses exist. To evaluate BMS 2012, we conduct a simulation analysis and compare BMS 2012 with the former Japanese BMS (BMS 2009) in terms of the present value of the total insurance premium that is closely related to the frequency of insurance claims. Based on the comparison, our main conclusion is that BMS 2012 offers more effects to lower the frequency of insurance claims than BMS 2009 does when the policyholders’ classes in BMS are high classes that evaluate as safety drivers, time discount and/or renewal rates are relatively low, and the policyholders’ risk averseness is large.

THE IMPORTANCE OF THE CHOICE OF TEST FOR FINDING EVIDENCE OF ASYMMETRIC INFORMATION

2014 ◽  
Vol 44 (2) ◽  
pp. 173-195 ◽  
Author(s):  
Catherine Donnelly ◽  
Martin Englund ◽  
Jens Perch Nielsen
Keyword(s):  
Asymmetric Information ◽  
Adverse Selection ◽  
Insurance Coverage ◽  
Insurance Premium ◽  
Insurance Market ◽  
Automobile Insurance ◽  
Selection Models ◽  
Positive Correlation ◽  
Using Data

AbstractWe put one of the predictions of adverse-selection models to the test, using data from the Danish automobile insurance market: that there is a positive correlation between claims risk and insurance coverage. We can find a statistically significant insurance coverage--risk correlation when coverage is expressed relative to the insurance premium, but not when it is expressed in monetary terms.

scholarly journals Estimating the Automobile Insurance Premium Based on Credibilities

2011 ◽  
Vol 24 (2) ◽  
pp. 279-292 ◽  
Author(s):  
Yeong-Hwa Kim ◽  
Mi-Jung Kim ◽  
Myung-Joon Kim
Keyword(s):  
Insurance Premium ◽  
Automobile Insurance

Use of open data to improve automobile insurance premium rating

2019 ◽  
Vol 62 (1) ◽  
pp. 58-78 ◽  
Author(s):  
Angel Blesa ◽  
David Íñiguez ◽  
Rubén Moreno ◽  
Gonzalo Ruiz
Keyword(s):  
Open Data ◽  
Geographical Location ◽  
Insurance Premium ◽  
Insurance Companies ◽  
Automobile Insurance ◽  
Economic Data ◽  
Market Opportunities ◽  
Context Data ◽  
Vehicle Fleet ◽  
Price Differences

An analysis was performed on millions of quotes by a number of insurance companies, covering a major part of the automobile insurance market in Spain. As expected, it was observed that the range of prices can be partially explained by the variables directly associated with the risk being insured in each case (vehicle specifications, age, driver experience, etc.), although there are considerable differences in some cases that are not explained by the said variables and that have a strong dependency on the geographical location of the risk. By using context data from open sources associated with the different Spanish provinces (vehicle fleet, climate, socio-economic data, among others), the premium estimation models are complemented and the price differences are better explained. The use of this type of data and models can help insurance companies to adapt their premium rating and identify possible market opportunities.

scholarly journals Zero-inflated and over-dispersed data models: Empirical evidence from insurance claim frequencies

2018 ◽  
Vol 84 (3-4) ◽  
pp. 103-128
Author(s):  
Imen Karaa ◽  
Habib Chabchoub
Keyword(s):  
Regression Models ◽  
Claims Data ◽  
Poisson Model ◽  
Insurance Premium ◽  
Automobile Insurance ◽  
Insurance Company ◽  
Insurance Claim ◽  
Sample Data ◽  
Claim Frequency ◽  
Over Dispersion

The main objective of this paper is to model automobile claim frequency by using standard count regression and zero-inflated regression models. The use of the latter model is mainly motivated by its ability to handle the over dispersion and zero-inflation phenomenon. The sample data consist of claims data obtained from one randomly selected automobile insurance company in Tunisia for a single year, 2009, containing beginning drivers and drivers who have had a license for less than three years. Our estimation results show that many exogenous variables can explain the frequency of claims; they are not taken into account in calculating the basic insurance premium. Moreover, the ZI binomial negative regression outperforms the standard count models and the ZI Poisson model in handling zero-inflated and additional over dispersed claim count data.

Automobile Insurance: Analysis of the Impact of a Premium Change on the Behavior of Insured at the Time of Subscription and Termination

2019 ◽  
Vol 10 (6) ◽  
pp. 517-530
Author(s):  
Zakaria Rouaine ◽  
◽  
Mounir Jerry ◽  
Ahlam Qafas
Keyword(s):  
Insurance Premium ◽  
Insurance Contract ◽  
Insurance Market ◽  
Automobile Insurance ◽  
Insurance Policy ◽  
Contract Term ◽  
Insurance Premiums ◽  
The Impact ◽  
Premium Risk

the subscription of an insurance contract allows an individual to take precautions against the repercussions of hazards and fortuitous events affecting their person or property. In return for this insurance policy, the insured pays a contribution at the beginning of the coverage period, while the insurer may have to provide a service if a certain type of damage occurs during the period in question. While the insurance market acts both on the insured by being able to induce him to terminate his insurance contract, in the case of excessive prices to those of other insurers, and on the insurer by forcing him to a certain extent to make his insurance premiums tolerable. It therefore appears that the insurance premium risk threatens the competitiveness of insurers on the insurance market and the termination of policyholders at the end of the contract term. By choosing to work on automobile insurance market, which is becoming increasingly competitive, as precise premium pricing is a major challenge for each insurer. The aim of this work is to study the sensitivity of insured persons to positives changes in automobile insurance premiums at the end of the contract.

Sign in / Sign up

Export Citation Format

Share Document