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The partial damage loss cover ratemaking of the automobile insurance using generalized linear models

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  • William Guevara-Alarc'on
  • Luz Mery Gonz'alez
  • Armando Antonio Zarruk

Abstract

It is illustrated a methodology to compute the pure premium for the automobile insurance (claim frequency and severity) using generalized linear models. It is obtained the pure premium for the partial damage loss cover (PPD) using a set of automobile insurance policies with an exposition of a year. It is found that the most influential variables in the claim frequency are the car production year, the insured's age, and the region's subscription policy and the most influential variables in the claim severity are the car's value, type and make and the insured's gender.

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  • William Guevara-Alarc'on & Luz Mery Gonz'alez & Armando Antonio Zarruk, 2017. "The partial damage loss cover ratemaking of the automobile insurance using generalized linear models," Papers 1707.03391, arXiv.org.
    • Handle: RePEc:arx:papers:1707.03391
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    References listed on IDEAS

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    1. Raydonal Ospina & Silvia Ferrari, 2010. "Inflated beta distributions," Statistical Papers, Springer, vol. 51(1), pages 111-126, January.
    2. de Jong,Piet & Heller,Gillian Z., 2008. "Generalized Linear Models for Insurance Data," Cambridge Books, Cambridge University Press, number 9780521879149.
    3. Bailey, Robert A. & Simon, LeRoy J., 1960. "Two Studies in Automobile Insurance Ratemaking," ASTIN Bulletin, Cambridge University Press, vol. 1(4), pages 192-217, December.
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