The insurance and risk management industries are typically considered to have little interest in energy issues, other than those associated with large energy supply systems. The historical involvement of these industries in the development and deployment of familiar loss-prevention technologies such as automobile air bags, fire prevention/suppression systems, and anti-theft devices, evidences a...

This paper assesses the ability of automobile insurance prices to distinguish the 2:1 ratio of men's to women's annual mileage, which is linked to a similar ratio of accident involvement per year. Review of current price classes by driver sex and age, by future mileage, and by past driver record reveals severe limitations to their capacity to assess women's lower mileage exposure to risk of acc...

In insurance and related industries including healthcare, it is common to have several outcome measures that the analyst wishes to understand using explanatory variables. For example, in automobile insurance, an accident may result in payments for damage to one’s own vehicle, damage to another party’s vehicle, or personal injury. It is also common to be interested in the frequency of accidents ...

It is common for professional associations and regulators to combine the claims experience of several insurers into a database known as an “intercompany” experience data set. In this paper, we analyze data on claim counts provided by the General Insurance Association of Singapore, an organization consisting of most of the general insurers in Singapore. Our data comes from the financial records ...

Since the first Ford Model T rolled off the assembly line, the regulation of automobile safety systems (“safety systems”) has changed drastically. While the regulation of safety systems was nonexistent at the birth of the Model T, the practice is abundant today. Modern automobile safety regulation saw its beginning in the late 1960s with the advent of seat belt laws, vehicle crashworthiness tes...

Bivariate Poisson regression models for ratemaking in car insurance has been previously used. They included zero-inflated models to account for the excess of zeros and the overdispersion in the data set. These models are now revisited in order to consider alternatives. A 2-finite mixture of bivariate Poisson regression models is used to demonstrate that the overdispersion in the data requires m...

Vehicles with foreign license plates can only be accepted in Turkey if they are insured compulsory automobile liability insurance at the border gate or Green Card Insurance valid for as required by regulations. The System was established to facilitate international mobility of motor land vehicles and ensure compensation damages borne third parties because an accident caused plates; however, thi...

Health care is a very large and important industry. Hospital and physician services are a large part of the U.S. economy. In 2009, hospital care alone accounted for 5.4% of GDP – roughly twice the size of automobile manufacturing, agriculture, or mining, and larger than all manufacturing sectors except food and beverage and tobacco products, which is approximately the same size. Physician servi...

Applications of fuzzy set theory (FST) to property casualty and life insurance have emerged in the last few years through the work of Lemaire (1990), Cummins and Derrig (1991, 1993) and Ostaszewski (1993). This paper continues that line of research by providing an overview of fuzzy pattern recognition techniques. We utilize them in clustering for risk and claim classification. The classic clust...

Inflation risk is of high relevance in non-life insurers’ long-tail business and can have a major impact on claims reserving. In this paper, we empirically study claims inflation with focus on automobile liability insurance based on a data set provided by a large German non-life insurance company. The aim is to obtain empirical insight regarding the drivers of claims inflation risk and its impa...