The Risky Business of Insurance Pricing
نویسنده
چکیده
The factors influencing insurance pricing decisions are assessed using the ISO product liability ratemaking files for 1980-1984. The mean loss level has a strong positive effect on manual rates and premium rates/exposure. Evidence on a variety of ambiguity measures is more mixed. As a broad generalization, risk ambiguity lowers manual rates, which may reffect exclusion of large loss outliers as being unrepresentative. Risk ambiguity tends to have a positive effect on actual pricing decisions for particular policies, especially bodily injury lines and the interactive risk-ambiguity model.
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تاریخ انتشار 2005