Abstract
This study suggests the use of profit analysis and simulation for assessing the price of motor insurance. Utilization of profit analysis and simulation on insurance pricing has several advantages; they can be applied to identify the distributions that agree or disagree with the actual experience, to predict the performance of pricing models under alternative scenarios, and to assess the performance of pricing models by allowing random variabilities in the underlying distribution of such models.
| Original language | English |
|---|---|
| Pages (from-to) | 45-57 |
| Number of pages | 13 |
| Journal | International Research Journal of Finance and Economics |
| Volume | 30 |
| Publication status | Published - Aug 2009 |
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Keywords
- Claim frequency
- Claim severity
- Motor insurance
- Profit analysis
- Simulation
ASJC Scopus subject areas
- Economics and Econometrics
- Finance
Cite this
Profit analysis and simulation in motor insurance. / Ismail, Noriszura; Jemain, Abdul Aziz.
In: International Research Journal of Finance and Economics, Vol. 30, 08.2009, p. 45-57.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Profit analysis and simulation in motor insurance
AU - Ismail, Noriszura
AU - Jemain, Abdul Aziz
PY - 2009/8
Y1 - 2009/8
N2 - This study suggests the use of profit analysis and simulation for assessing the price of motor insurance. Utilization of profit analysis and simulation on insurance pricing has several advantages; they can be applied to identify the distributions that agree or disagree with the actual experience, to predict the performance of pricing models under alternative scenarios, and to assess the performance of pricing models by allowing random variabilities in the underlying distribution of such models.
AB - This study suggests the use of profit analysis and simulation for assessing the price of motor insurance. Utilization of profit analysis and simulation on insurance pricing has several advantages; they can be applied to identify the distributions that agree or disagree with the actual experience, to predict the performance of pricing models under alternative scenarios, and to assess the performance of pricing models by allowing random variabilities in the underlying distribution of such models.
KW - Claim frequency
KW - Claim severity
KW - Motor insurance
KW - Profit analysis
KW - Simulation
UR - http://www.scopus.com/inward/record.url?scp=69849086102&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=69849086102&partnerID=8YFLogxK
M3 - Article
VL - 30
SP - 45
EP - 57
JO - International Research Journal of Finance and Economics
JF - International Research Journal of Finance and Economics
SN - 1450-2887
ER -