P recommendation models are key tools in customer relationship management (CRM). This study develops a product recommendation model based on the principle that customer preference similarity stemming from prior purchase behavior is a key element in predicting current product purchase. The proposed recommendation model is dependent on two complementary methodologies: joint space mapping (placing...

Purpose: this study wants to find any relationship between the numbers of purchase and the income the customer brings to the company. The attempt is to find those customers who buy more than one life insurance policy and represent the signs of good payments at the same time by the help of data mining tools. Design/ methodology/ approach: the approach of this research is to use data mining tools...

Using data on insurance contracts from one of China’s largest insurance companies, we find that daily air pollution levels have a significant effect on the decision to purchase or cancel health insurance in a manner inconsistent with rational choice theory. A one standard deviation increase in daily air pollution leads to a 7.2% increase in the number of insurance contracts sold that day. Condi...

Budgeting for maintenance and repair When we purchase a motor vehicle, we understand that we will have recurring costs for maintenance, theft and accident insurance, cleaning, parking, etc. The same is true for ophthalmic equipment since it costs money to operate and to maintain during its life cycle. On average, the original purchase cost only makes up about twenty per cent of the entire life ...

In this paper, we use feed forward neural networks with the back-propagation algorithm to build decision models for five insurances including life, annuity, health, accident, and investment-oriented insurances. Six features were selected for the inputs of the neural networks including age, sex, annual income, educational level, occupation, and risk preference. Three hundred insurants from an in...

Not only does economic theory predict high-risk individuals to be more likely to purchase insurance, but insurance coverage is also thought to crowd out precautionary activities. In spite of stark theoretical predictions, there is conflicting empirical evidence on adverse selection, and evidence on ex ante moral hazard is very scarce. Using data from the Seguro Popular Experiment in Mexico, thi...

We examine optimal insurance purchase decisions of individuals that exhibit behavior consistent with Regret Theory. Our model incorporates a utility function that assigns a disutility to outcomes that are ex-post suboptimal, and predicts that individuals with regret-theoretical preferences adjust away from the extremes of full insurance and no insurance coverage. This prediction holds for both ...

Geneticists worry that their patients and the patients’ families will be subject to unfair discrimination by medical underwriters when the results of DNA tests show that the patients are predisposed to certain diseases. They point out that these individuals may be healthy at the time the test is carried out and that, without the test, they would be considered standard insurance risks. This appr...

The majority of Medicare beneficiaries supplement the basic Medicare benefit package with additional insurance. This article reviews the literature on Medicare supplemental insurance. Supplemental insurance plays a significant role in protecting Medicare beneficiaries from financial risk. The two major sources of coverage for beneficiaries--former employers and individual purchase--differ in be...