Risk factor selection in automobile insurance policies: a way to improve the bottom line of insurance companies

The objective of this paper is to test the validity of using 'bonus-malus' (BM) levels to classify policyholders satisfactorily. In order to achieve the proposed objective and to show empirical evidence, an artificial intelligence method, Rough Set theory, has been employed. The empirical...

Descripción completa

Detalles Bibliográficos
Autores: Segovia Vargas, María Jesús, Camacho Miñano, Juana María Del Mar, Pascual Ezama, David
Tipo de recurso: artículo
Fecha de publicación:2015
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/34188
Acceso en línea:https://hdl.handle.net/20.500.14352/34188
Access Level:acceso abierto
Palabra clave:Automobile insurance company
Risk factors
Bonus malus system
Rough set theory
Artificial intelligence
Inteligencia artificial (Informática)
Seguros
1203.04 Inteligencia Artificial
5304.05 Seguros
Descripción
Sumario:The objective of this paper is to test the validity of using 'bonus-malus' (BM) levels to classify policyholders satisfactorily. In order to achieve the proposed objective and to show empirical evidence, an artificial intelligence method, Rough Set theory, has been employed. The empirical evidence shows that common risk factors employed by insurance companies are good explanatory variables for classifying car policyholders' policies. In addition, the BM level variable slightly increases the explanatory power of the a priori risks factors.