The Use of Annual Mileage as a Rating Variable
學年 104
學期 1
出版（發表）日期 2016-01-01
作品名稱 The Use of Annual Mileage as a Rating Variable
作品名稱（其他語言）
著者 Lemaire, Jean; Park, Sojung; Wang, Kili C.
單位
出版者
著錄名稱、卷期、頁數 ASTIN Bulletin: The Journal of the IAA 46(1), p.39-69
摘要 Auto insurance companies must adapt to ever-evolving regulations and technological progress. Several variables commonly used to predict accidents rates, such as gender and territory, are being questioned by regulators. Insurers are pressured to find new variables that predict accidents more accurately and are socially acceptable. Annual mileage seems an ideal candidate. The recent development in new technologies should induce insurance carriers to explore ways to introduce mileage-based insurance premiums. We use the unique database of a major insurer in Taiwan to investigate whether annual mileage should be introduced as a rating variable in auto third-party liability insurance. We find that annual mileage is an extremely powerful predictor of the number of claims at-fault. The inclusion of mileage as a new variable should, however, not take place at the expense of bonus-malus systems; rather, the information contained in the bonus-malus premium level complements the value of annual mileage. An accurate rating system should therefore include annual mileage and bonus-malus as the two main building blocks, possibly supplemented by the use of other variables like age, territory and engine cubic capacity. While Taiwan has specific characteristics (high traffic density, a mild bonus-malus system and limited compulsory auto coverage), our results are so strong that we can confidently conjecture that they extend to all developed nations.
關鍵字 Auto liability insurance;Rating variables;Annual mileage
語言 en
ISSN 0515-0361;1783-1350
期刊性質 國外
收錄於 SSCI
產學合作
通訊作者 Park, Sojung
審稿制度 否
國別 GBR
公開徵稿
出版型式 ,電子版,紙本
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